JPMorgan Chase & Co. has deposited N50 billion ($38 million) with the Central Bank of Nigeria (CBN) as part of efforts to secure a licence to operate a merchant bank in the country, Bloomberg has reported.
Gatekeepers News reports that the deposit is reportedly one of the final regulatory requirements for approval and signals the US financial services giant’s readiness to commence operations if its application is successful.
A CBN approval would allow JPMorgan to expand its Nigerian operations beyond its existing representative office in Lagos, where it provides commercial and investment banking services, alongside asset and wealth management.
According to Bloomberg, the bank hopes to secure the licence by the end of 2026 or early 2027, subject to obtaining 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 deepen JPMorgan’s presence in Nigeria as the country seeks to strengthen its financial markets and attract international investment.
In another development, JPMorgan included Nigeria in its new emerging markets index on September 14, assigning the country a 7.4 per cent weighting.
The Government Bond Index–Emerging Markets Edge (GBI-EM Edge), launched at the end of September, tracks local-currency government bonds across emerging and frontier markets.
Nigeria’s inclusion came nearly 11 years after JPMorgan removed the country from its GBI-EM in 2015. Its reported 7.4 per cent weighting places Nigeria among the largest markets represented in the new benchmark.
The development comes after the CBN raised the minimum capital requirement for merchant banks with national licences to N50 billion in 2024.
JPMorgan’s reported deposit of the required amount represents a significant step in its bid to establish a locally licensed merchant-banking operation, although final approval remains subject to the CBN’s regulatory process.
