US banking giant JPMorgan Chase & Co. has deposited 50 billion naira ($38 million) with the Central Bank of Nigeria as it seeks a licence to operate a merchant bank in the country, Bloomberg reported on Tuesday.
The deposit fulfils one of the final regulatory requirements for approval and signals the lender’s readiness to launch merchant banking operations once its application is cleared, the sources said.
JPMorgan expects to secure the licence by the end of 2026 or early 2027, subject to all necessary regulatory approvals.
On October 8, Dapo Olagunji, managing director of JPMorgan West Africa, announced plans to establish a merchant bank in Nigeria, with operations expected to begin before the end of 2026, pending regulatory approval.
The proposed merchant bank would expand the firm’s presence beyond its existing representative office in Lagos, which currently provides commercial and investment banking services along with asset and wealth management.
The move comes as Nigeria works to deepen its financial markets and attract international investment. In September, JPMorgan included Nigeria in its new emerging markets index, assigning the country a 7.4 per cent weighting in the Government Bond Index-Emerging Markets Edge.
In 2024, the Central Bank of Nigeria raised the minimum capital requirement for merchant banks holding national licences to 50 billion naira as part of efforts to strengthen the sector against external shocks.
JPMorgan declined to comment on the report, while the Central Bank of Nigeria did not immediately respond to requests for comment.
