BILLIONS RAIN IN! JPMORGAN DROPS N50BN WITH CBN TO SECURE MERCHANT BANKING LICENCE BY AMINAT KOMOLAFE MUSTOPHA
GREATRIBUNETVNEWS– “JPMorgan Chase & Co has deposited N50bn with the Central Bank of Nigeria, CBN, as part of requirements to secure a merchant banking licence to expand operations in Nigeria.”
Global Banking Giant Eyes Nigeria Expansion With $38M Deposit
WHAT IT SIGNALS:
“The deposit, valued at about $38m, is a key regulatory requirement in the lender’s application and signals its readiness to establish a licensed banking operation in Africa’s largest economy.”
Bloomberg reported on Tuesday that the payment, however, does not guarantee approval, as the CBN is yet to take a final decision.
People familiar with the process, who asked not to be identified because the matter is private, said the deposit was one of the final steps for approval. They added that the bank expects to secure the licence by end of 2026 or early 2027, subject to regulatory approval.
“JPMorgan Chase & Co. deposited 50 billion naira, $38 million, with the Central Bank of Nigeria as it moves closer to securing a banking license in Africa’s most populous nation, according to people familiar with the matter,” Bloomberg reported.
“The deposit, one of the final regulatory requirements for obtaining approval, signals the largest US lender’s readiness to launch a merchant-banking operation in Nigeria should its application be approved, said the people who asked not to be identified because the process is private.”
JPMorgan declined to comment, while a CBN spokesman did not immediately respond to request for comment, according to Bloomberg.
The proposed entry would mark a significant expansion for the bank in Nigeria, where it has advised governments and companies on Eurobond issuances and other transactions for years through its representative office in Lagos.
A merchant banking licence would enable the lender to broaden its services into corporate banking, lending, trade finance and payments.
Under Nigerian banking regulations, licence applicants are required to place capital in a designated account with the CBN to demonstrate financial capacity to support proposed operations.
The development comes as international financial institutions seek to deepen participation in Africa’s banking and investment markets, driven by demand for trade financing, corporate credit and cross-border payment services.
JPMorgan’s Nigerian operation is part of its wider expansion across the continent. The New York-based lender has recently strengthened its investment-banking leadership in Africa, appointing Edward Bell to lead investment banking in sub-Saharan Africa, Sailepu Montet as head of its Kenya office and Michael Ahonzo Avou to oversee Ivory Coast operations.
Nigeria remains a major destination for such services due to its large economy, corporate sector and role in regional trade.
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