JPMorgan Chase & Co. has deposited ₦50 billion ($38 million) with the Central Bank of Nigeria (CBN) as it advances plans to establish a merchant bank in the country, marking a major step towards securing regulatory approval for the proposed operation.
According to Bloomberg, the deposit is one of the final regulatory requirements for the United States-based financial giant to obtain a merchant banking licence in Nigeria. The move signals its readiness to commence operations once the necessary approvals are secured.
The proposed merchant bank would significantly expand JPMorgan’s presence in Nigeria beyond its existing representative office in Lagos, through which it conducts activities relating to its commercial and investment banking businesses, as well as asset and wealth management services.
According to report, the lender is reportedly targeting the end of 2026 or early 2027 to obtain the licence, subject to the fulfilment of all regulatory requirements and the necessary approvals from the relevant authorities.
The managing director of JPMorgan West Africa Dapo Olagunji, had in October 8 announced the bank’s plan to establish a merchant banking operation in Nigeria, with commencement initially expected before the end of 2026, subject to regulatory clearance.
The proposed entry comes as Nigeria seeks to deepen its financial markets, attract foreign investment and strengthen its position as a destination for international financial institutions. JPMorgan’s proposed operation could also broaden access to specialised financial services for businesses, investors and other market participants.
The development follows another significant step in the bank’s renewed engagement with Nigeria’s financial market. On September 14, JPMorgan announced Nigeria’s inclusion in its new emerging markets index, assigning the country a weighting of 7.4 per cent.
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 the country was removed from JPMorgan’s GBI-EM index in 2015, making its return a notable development for the country’s debt market.
With a reported weighting of 7.4 per cent, Nigeria ranks among the more prominent markets represented in the new benchmark, potentially increasing its visibility among international investors tracking local-currency government debt.
The proposed merchant bank must, however, satisfy Nigeria’s regulatory and capital requirements before it can commence operations. In 2024, the CBN raised the minimum capital requirement for merchant banks holding national licences to ₦50 billion, the same amount JPMorgan has reportedly deposited with the apex bank.
