JPMorgan Chase & Co., the largest bank in the United States by assets, has reportedly deposited ₦50 billion (approximately $38 million) with the Central Bank of Nigeria (CBN) as it moves closer to securing a merchant banking licence in Nigeria.
According to a report by Bloomberg, the deposit is one of the final regulatory requirements the American financial institution must fulfil before obtaining approval to establish a merchant banking operation in Africa’s most populous country.
The report, citing people familiar with the matter who requested anonymity because the process is private, said the deposit signals JPMorgan’s readiness to commence operations in Nigeria if its application is approved.
The move is expected to strengthen the bank’s presence in Nigeria’s financial sector and expand its ability to serve major corporations, multinational businesses, and institutional clients.
JPMorgan already maintains a presence in Nigeria through its representative office in Lagos. However, obtaining a merchant banking licence would enable the bank to broaden its activities and provide additional financial services to eligible corporate customers.
The proposed expansion could position the bank to participate more actively in areas such as corporate finance, trade financing, investment banking, and other financial services for businesses operating in Nigeria.
The reported deposit comes amid the CBN’s efforts to enforce capital requirements for banks operating in the country. In 2024, the apex bank announced a recapitalisation programme that set the minimum paid-up capital requirement for merchant banks authorised to operate nationally at ₦50 billion.
Although the reported deposit represents a significant step in JPMorgan’s licensing process, the bank will still require the necessary regulatory approval before commencing operations under the proposed licence.
Bloomberg reported that JPMorgan declined to comment on the development, while the CBN did not immediately respond to a request for comment.
The report added that approval could come by the end of 2026 or in early 2027, although the timeline remains subject to the regulatory process.
Nigeria remains an important market for international financial institutions because of its large economy, extensive corporate sector, and role in African trade.
If approved, JPMorgan’s proposed merchant banking operation would mark a significant development in the bank’s Nigerian business and could expand the financial services available to major companies operating in the country.
