JPMorgan deposits ₦50bn with CBN in Nigerian banking licence bid

JPMorgan Chase has deposited ₦50bn, about $38m, with the Central Bank of Nigeria as it pursues a merchant banking licence, Bloomberg reported on Tuesday, citing people familiar with the matter.

The payment meets the minimum paid-up capital requirement for a nationally authorised merchant bank and marks one of the final regulatory steps in the application, according to the sources, who asked not to be identified because the process is private.

The deposit, the report said, "signals the largest US lender's readiness to launch a merchant-banking operation in Nigeria should its application be approved." JPMorgan declined to comment, and a CBN spokesman did not immediately respond to a request for comment.

The payment does not guarantee approval, because the CBN has yet to make a final decision on the application. The regulator must still assess the company's ownership, governance, business model, management, risk controls and operational readiness.

The CBN lifted the minimum for merchant banks from ₦15bn to ₦50bn in March 2024 as part of a wider recapitalisation programme. The same framework requires ₦200bn from national commercial banks and ₦500bn from lenders with international authorisation.

Under Nigerian banking rules, applicants must place capital in a designated account with the CBN to demonstrate that they can fund their proposed operations.

JPMorgan currently operates a representative office in Lagos. For years it has advised governments and companies there on Eurobond issues and other capital-market transactions.

A merchant banking licence would let the New York-based lender offer corporate banking, lending, trade finance and payments. It could also serve large Nigerian and multinational companies with treasury services and access to global capital markets.

Its arrival would increase competition among banks serving Nigeria's biggest corporate clients. The scope of its eventual operations would depend on the licence the CBN grants.

Nigeria draws such services because of its large economy, extensive corporate sector and role in regional trade.

Dapo Olagunju, managing director of JPMorgan's West African business, announced that the company intended to establish a merchant bank in Nigeria less than two weeks earlier. The plan was unveiled at the Nigeria–Asia Financial Connectivity Dialogue in Singapore, which brought together the CBN, JPMorgan, the Nigerian Exchange Group and FMDQ Group.

The bank has also reshaped its African investment-banking leadership in recent months as it seeks a larger share of business from companies, governments and investors in African markets. It appointed Edward Bell to lead investment banking in sub-Saharan Africa.

Sailepu Montet became head of the Kenya office, while Michael Ahonzo Avou took charge of operations in Côte d'Ivoire.

The sources said JPMorgan expects to obtain approval by the end of 2026 or in early 2027, subject to the regulator's decision.