NIGERIA: JPMorgan Chase & Co., the largest bank in the United States, has deposited ₦50 billion with the Central Bank of Nigeria (CBN) as it advances its bid to secure a banking licence that would allow it to expand its operations in Africa’s largest economy.
The deposit, equivalent to about $38 million, is one of the final regulatory requirements for the proposed licence and signals the lender’s readiness to establish a merchant banking operation in Nigeria if its application is approved, reports Bloomberg.
People familiar with the process said JPMorgan expects to obtain the licence by the end of 2026 or early 2027, subject to regulatory approval.
However, the approval is not guaranteed, as the CBN must still make a final decision on the application, the sources said.
JPMorgan declined to comment on the development, while a CBN spokesperson did not immediately respond to a request for comment.
Under Nigerian banking regulations, prospective banks are required to deposit capital in a dedicated account with the central bank as part of the licensing process. The requirement is intended to demonstrate that applicants have sufficient funds to support their proposed operations.
The move represents a significant step in JPMorgan’s efforts to deepen its presence in Africa and expand its share of the continent’s trade finance, lending, payments and corporate-banking markets.
The New York-based financial institution currently operates a representative office in Lagos, Nigeria’s commercial hub. Securing a banking licence would enable it to broaden its range of services in the country.
JPMorgan has also strengthened its investment-banking capacity across Africa in recent months.
The lender appointed Edward Bell to lead investment banking in sub-Saharan Africa. It had previously named Sailepu Montet to head its Kenya office and Michael Ahonzo Avou to oversee its operations in Ivory Coast.
The proposed Nigerian operation would add to the bank’s presence on the continent as it pursues opportunities in major African markets.
For now, however, the proposed expansion remains subject to the CBN’s final decision on the licence application.
