JPMorgan Deposits ₦50bn With CBN as It Seeks Nigerian Banking Licence

JPMorgan Chase & Co. has reportedly deposited ₦50 billion with the Central Bank of Nigeria (CBN) as part of its application for a merchant banking licence, marking a significant step in the American financial services giant’s plans to expand its operations in Africa’s largest economy.

The reported deposit, equivalent to about $38 million, meets a key capital requirement in the licensing process, according to reports published by Bloomberg and several Nigerian news organizations on October 20 and 21. However, the payment does not mean the bank has received a licence, as the CBN must still decide whether to approve its application.

People familiar with the application told Bloomberg that the deposit was among the final regulatory requirements the bank needed to meet. They said JPMorgan expects to obtain approval by the end of 2026 or in early 2027, provided the remaining conditions are satisfied. That timeline reflects the sources’ account of the process, not a publicly confirmed deadline from the regulator.

The bank’s proposed entry would extend its presence beyond its existing representative office in Lagos, where it has maintained a foothold in Nigeria’s financial market. A merchant banking licence would allow it to undertake a broader range of permitted banking activities, particularly services aimed at businesses and institutional clients, rather than automatically establishing a mass-market retail banking operation.

JPMorgan’s plans for a Nigerian subsidiary were disclosed earlier in October by Dapo Olagunju, the bank’s managing director for West Africa, during the Nigeria-Asia Financial Connectivity Dialogue in Singapore. The event was convened by the CBN alongside Nigerian Exchange Group and FMDQ Group, according to Premium Times’ account of the announcement.

The proposed expansion comes as JPMorgan seeks to strengthen its business across Africa, including in corporate banking, lending, payments and trade finance. A locally licensed operation could give the bank a more direct platform for serving Nigerian companies involved in international trade, raising capital or seeking financing for major business activities.

The ₦50 billion deposit is significant because it corresponds to the minimum paid-up capital requirement for a nationally licensed merchant bank under the CBN’s recapitalization framework, as reported by BusinessDay and The Guardian. The requirement is intended to ensure that institutions entering the market have the capital base needed to support their proposed operations.

JPMorgan has longstanding ties to Nigeria’s financial sector, including work advising governments and companies on international debt offerings and other financial transactions. A merchant banking licence would represent a change from its current representative-office arrangement, potentially allowing it to provide a wider range of services locally, subject to the scope of the approval granted by the CBN.

Bloomberg reported that JPMorgan declined to comment on the reported deposit, while a CBN spokesperson did not immediately respond to its request for comment. Neither the deposit nor the reported expected approval window should therefore be treated as confirmation that the licence has been granted.

If approved, JPMorgan’s proposed operation could add another major international competitor to Nigeria’s market for corporate and wholesale banking services, particularly in financing, capital markets and cross-border transactions. The practical impact will depend on the activities permitted under its licence and the scale of its eventual operations, while the immediate next step remains a formal decision by the central bank.