JPMorgan moves closer to securing banking licence in Nigeria - Report

American multinational banking institution JPMorgan Chase & Co. has deposited 50 billion naira, equivalent to about US$38 million, with the Central Bank of Nigeria (CBN) as it seeks to secure a banking licence and expand its operations in the country, Bloomberg has reported.

The deposit is among the final regulatory requirements the US banking giant must fulfil before its application can be approved, according to people familiar with the process who spoke to Bloomberg on condition of anonymity.

The move indicates JPMorgan’s readiness to establish a merchant-banking operation in Nigeria, although the proposed expansion remains subject to regulatory approval.

The lender however expects to obtain the licence by the end of 2026 or in early 2027, the sources said. However, the CBN is yet to make a final decision, and approval is not guaranteed.

Despite the reported move, JPMorgan declined to comment on the application, while a spokesperson for the CBN did not immediately respond to Bloomberg’s request for comment.

Under Nigerian banking regulations, institutions seeking a licence are required to deposit capital into a dedicated account with the central bank. The requirement is intended to demonstrate that applicants have sufficient financial resources to support their proposed operations.

The planned entry into Nigeria’s banking market forms part of JPMorgan’s broader strategy to strengthen its presence across Africa and capture a larger share of the trade finance, lending, payments and corporate banking markets.

The bank currently operates a representative office in Lagos, Nigeria’s commercial capital. Securing a banking licence would allow it to broaden its range of services and deepen its engagement with corporate clients in the country.

With Nigeria being Africa’s largest economy and boasting of an extensive business market, the country remains an important destination for international financial institutions seeking to expand their operations across the continent.

Additionally, JPMorgan has also taken steps to strengthen its investment-banking capacity across the continent.

The bank recently appointed Edward Bell to lead investment banking in sub-Saharan Africa. It also named Sailepu Montet to head its Kenya office and Michael Ahonzo Avou to oversee its operations in Ivory Coast.

Meanwhile, the proposed operation remains subject to the CBN’s final decision and JPMorgan’s fulfilment of the applicable regulatory requirements.

MA

With additional files from Bloomberg