JPMorgan Moves Closer to Nigerian Merchant Bank Licence With N50bn CBN Deposit

JPMorgan Chase & Co. has deposited N50 billion ($38 million) with the Central Bank of Nigeria as it moves closer to securing a merchant banking licence in Africa's most populous nation. The deposit is one of the final regulatory requirements for approval.

It signals that the largest US lender is ready to launch a merchant banking operation in Nigeria if its application succeeds. The deposit does not guarantee approval.

Minimum capital requirement met

The N50 billion matches the minimum capital the CBN set in its March 2024 recapitalisation rules for a merchant bank. For a commercial bank with international authorisation, the minimum is N500 billion.

JPMorgan expects its licence by the end of 2026 or early 2027. The move follows the bank's public announcement of its plans earlier this month.

Lagos office to become full-service branch

JPMorgan's West Africa managing director, Dapo Olagunju, said on October 8 that the bank intends to open a merchant bank before the end of 2026, subject to regulatory approval.

The bank plans to convert its Lagos representative office, which opened in the 1980s, into a full-service branch.

Dollar lending for large corporates

A merchant banking licence would allow JPMorgan to offer dollar loans to large Nigerian corporates that have limited access to foreign currency financing. The bank was also among the arrangers of Nigeria's $2.2 billion Eurobond issuance in 2024.

The deposit puts JPMorgan at the final stage of a process that could add a major global lender to Nigeria's merchant banking segment. For large corporates, a JPMorgan branch could widen access to dollar credit and global capital markets. The CBN still has to approve the application.