JPMorgan deposits N50bn with CBN in merchant banking licence push

JPMorgan Chase has deposited N50 billion ($38 million) with the Central Bank of Nigeria as part of its application for a merchant banking licence. The deposit meets the minimum paid-up capital threshold for a nationally authorised merchant bank under the CBN recapitalisation framework.

The US bank expects regulatory approval by the end of 2026 or early 2027. The timing depends on the CBN decision. JPMorgan declined to comment. The CBN did not respond to a request for comment.

From advisory office to wholesale banking

JPMorgan has operated in Nigeria for years through a Lagos representative office. It advises governments and corporations on Eurobond issuances and other financial transactions. A merchant banking licence would represent a larger commitment. It would allow the bank to move beyond advisory work into wholesale banking, including corporate lending, treasury services, capital markets transactions and asset management.

A locally licensed operation could give JPMorgan a more direct role in financing Nigerian companies and financial institutions. It would also position the bank to support transactions involving international investors.

Africa push and competition

The licence move comes amid a broader effort by JPMorgan to strengthen its presence across Africa. The bank has made several regional appointments in recent months. It named Edward Bell as head of investment banking in sub-Saharan Africa. Sailepu Montet will lead its Kenya office. Michael Ahonzo Avou will oversee operations in Ivory Coast.

Nigeria's corporate sector and capital markets offer opportunities for international lenders seeking to expand their African operations. If JPMorgan secures the licence, it could increase competition for major corporate clients among local and foreign banks operating in the country.

What it means for Nigeria

The development comes as Nigeria pursues foreign exchange reforms aimed at restoring investor confidence. Currency volatility and broader economic risks remain important considerations for international financial institutions assessing opportunities in the country. For Nigerian businesses, a licensed JPMorgan would add another deep-pocketed lender competing for large corporate clients and capital markets deals.

Separately, Bank78 MFB has commenced operations as a private digital lender in Nigeria. The bank said it is fully licensed by the CBN, insured by the Nigeria Deposit Insurance Corporation and compliant with the Nigeria Data Protection Regulation. It targets the mass-affluent everyday Nigerian with a secure and premium digital banking experience.