Today·Emerging
Follow-up 3h ago4
92%
JPMorgan deposits $38m with Nigeria central bank for merchant bank licence
JPMorgan Chase has deposited $38 million with Nigeria's Central Bank as a final regulatory step toward obtaining a merchant bank licence. The US bank aims to launch merchant banking operations in Nigeria by year-end 2026 or early 2027, expanding beyond its current representative office and reinforcing its African financial strategy.
Quick Facts
- JPMorgan deposited $38 million with CBN
- Deposit constitutes final regulatory requirement for merchant bank licence
- JPMorgan plans to establish merchant banking subsidiary in Nigeria
- JPMorgan currently operates a representative office in Lagos
- JPMorgan included Nigeria in emerging markets index in September 2026
JPMorgan Chase & Co. has deposited $38 million (N50 billion) with the Central Bank of Nigeria (CBN) as a final regulatory requirement for securing a merchant bank licence in the country, according to Bloomberg. The deposit marks a significant step in the US bank's strategy to expand its African financial operations, moving beyond its existing representative office in Lagos.
JPMorgan West Africa Managing Director Dapo Olagunju announced in October 2026 the bank's plan to establish a merchant banking subsidiary in Nigeria, with operations expected to commence before year-end 2026 if regulatory approvals are obtained. The bank hopes to receive the licence by the end of 2026 or in early 2027, pending completion of all requisite regulatory approvals. The merchant bank licence would enable JPMorgan to expand its current asset and wealth management and commercial and investment banking services in Nigeria.
The expansion reflects JPMorgan's broader strategy to deepen its presence across Africa, particularly in payments, lending, trade finance, and corporate banking. The move also coincides with Nigeria's return to financial prominence in global markets—in September 2026, JPMorgan included Nigeria in its new emerging markets index with a 7.4 percent weighting, marking the country's re-entry into the benchmark nearly 11 years after its 2015 removal. In 2024, the CBN raised the minimum capital requirement for merchant bank national licences to N50 billion, the amount JPMorgan has now deposited.
JPMorgan's history in Nigeria dates to 1961, when Chase Manhattan Bank (which later became JPMorgan Chase) opened a branch in Lagos. The planned merchant bank represents a modernisation of the bank's long-standing commitment to Nigeria's financial sector.
Why This Matters
JPMorgan's $38 million deposit satisfies Nigeria's minimum capital requirement for merchant bank licences, set at N50 billion in 2024. If approved by end-2026 or early 2027, JPMorgan will transition from representative office to full merchant banking operations, offering asset management, wealth management, and investment banking services. This marks JPMorgan's expansion of African financial operations and follows Nigeria's September 2026 re-entry into JPMorgan's emerging markets index (7.4% weighting) after 11-year exclusion—signalling renewed regulatory confidence and market integration for the country's financial sector.
Timeline & Sources
Jan 1, 1961
WireChase Manhattan Bank opens branch in Lagos, Nigeria
Jan 1, 2015
WireNigeria removed from JPMorgan GBI-EM benchmark index
Oct 20, 2026
WireBloomberg reports JPMorgan's $38 million deposit with CBN for merchant bank licence
Dec 31, 2026
WireTarget date for JPMorgan merchant bank operations commencement (subject to approval)
Related Signals
Sources
- JPMorgan Nears Nigeria Launch After Deposit With Central BankBloomberg.comWireOct 20, 2026
- JP Morgan to secure Nigerian banking licence after N50 billion deposit with CBN – ReportPremium Times NigeriaMediaOct 20, 2026
- JP Morgan deposits $38m with CBN for licence to operate banks in NigeriaDaily Post NigeriaMediaOct 20, 2026
- Report: JPMorgan deposits $38m with CBN ahead of planned Nigeria launchTheCableMediaOct 20, 2026