JPMORGAN Chase & Co is preparing to deepen its Nigerian operations, citing the impact of economic reforms and the quality of banking regulation as major factors behind its decision to seek a merchant banking licence from the Central Bank of Nigeria (CBN).
The United States banking giant has deposited N50 billion, equivalent to about $38 million, with the CBN as part of the regulatory requirements for its proposed expansion, according to a Bloomberg report.
Managing Director of JPMorgan West Africa, Mr Dapo Olagunju, said improvements in Nigeria’s economic policy environment and the central bank’s regulatory standards had strengthened the country’s appeal to the lender.
“The level of reforms and the impact of the reforms is why we are expanding in Nigeria. We are also very impressed with the quality of banking regulations at the central bank,” Olagunju said.
The bank is seeking to obtain the licence by December 2026 or early 2027, although approval will depend on the CBN’s assessment of its application.
READ ALSO: CBN grants JPMorgan approval to establish merchant bank in Nigeria
People familiar with the process told Bloomberg that the N50 billion deposit represents one of the final regulatory requirements ahead of a possible approval. They requested anonymity because the application process is private.
The proposed merchant banking licence would give JPMorgan a broader platform to serve Nigerian businesses and institutions beyond its existing representative office in Lagos.
Currently, the bank’s Nigerian operations are largely focused on advising governments and companies on international financial transactions, including Eurobond issuances. A merchant banking licence would potentially allow it to expand into corporate finance, lending and trade-related services, subject to regulatory approval.
The planned investment comes as international lenders seek to strengthen their presence in African markets, where demand for corporate financing, investment banking and cross-border financial services continues to create opportunities.
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For JPMorgan, Nigeria’s large economy and business sector offer an opportunity to deepen relationships with local companies and institutions while expanding its footprint in West Africa.
READ ALSO: JPMorgan deposits N50bn with CBN, targets Nigeria merchant banking licence
The N50bn deposit marks a significant step in the application process, but it does not amount to regulatory approval or authorise the bank to commence merchant banking operations.
JPMorgan’s expansion plans also extend beyond Nigeria. The lender has been strengthening its investment banking leadership across sub-Saharan Africa through a series of appointments.
It named Edward Bell to lead investment banking in sub-Saharan Africa, while Sailepu Montet was appointed head of its Kenya office and Michael Ahonzo Avou was named to oversee its operations in Ivory Coast.
The appointments reflect the bank’s broader strategy to build its capacity across key African markets as it positions itself to capture opportunities in the continent’s financial services industry.
