JPMorgan Chase has deposited ₦50 billion (approximately $38 million) with the Central Bank of Nigeria (CBN) as it moves closer to securing a merchant banking licence, according to a Bloomberg report published on October 20, 2026.
The deposit represents a key step towards establishing a fully licensed merchant banking operation in Nigeria, potentially expanding the US financial services giant’s ability to serve businesses, institutional investors and corporate clients in Africa’s largest economy.
Bloomberg reported people familiar with the private process confirmed the deposit while regulatory approval remains outstanding, meaning the bank has yet to receive final authorisation to commence operations under the proposed licence.
The amount deposited corresponds to the minimum paid-up capital requirement for a national merchant bank in Nigeria under the country’s banking recapitalisation framework. Meeting the capital requirement is an important part of the licensing process, although the CBN must still complete its regulatory assessment before granting approval.
JPMorgan Targets Nigerian Merchant Banking Launch Before End of 2026
JPMorgan has previously signalled its intention to establish a merchant banking business in Nigeria before the end of 2026. In early October, Dapo Olagunju, JPMorgan’s managing director for West Africa, said the bank was targeting a launch before year-end, subject to regulatory approval.
Olagunju made the announcement at the Nigeria–Asia Financial Connectivity Dialogue in Singapore, an event organised with the participation of the CBN, Nigerian Exchange Group and FMDQ Group.
The proposed timeline suggests that JPMorgan is progressing towards its planned entry into the domestic merchant banking market. However, the actual commencement of operations will depend on the outcome and timing of the CBN’s licensing process.
A Nigerian merchant banking licence would enable JPMorgan to undertake a broader range of financial activities within the country’s regulatory framework.
These activities could include corporate debt and equity underwriting, structured trade finance, capital-raising transactions and other investment banking services for Nigerian companies and institutional clients.
The licence would also provide a framework for the bank to expand its participation in Nigeria’s domestic capital markets and develop a local balance sheet to support eligible banking activities.
JPMorgan already has a longstanding presence in Nigeria through its Lagos representative office and provides services associated with investment banking, financial advisory and international markets.
A fully licensed merchant banking operation would represent a significant expansion of that presence, potentially allowing the bank to conduct a wider range of regulated activities locally rather than relying primarily on its existing cross-border and representative-office arrangements.
N50 Billion Capital Requirement Determines Entry Into the Market
Nigeria’s banking recapitalisation exercise has raised the minimum capital requirements applicable to different categories of banks, including merchant banks.
Under the framework cited in connection with JPMorgan’s application, a national merchant bank must maintain at least ₦50 billion in paid-up capital. JPMorgan’s reported deposit matches that minimum threshold, underscoring the capital commitment required to establish a locally licensed operation.
The capital requirement is intended to provide banks with a stronger financial base to absorb losses, support lending and other banking activities, and maintain resilience against financial and economic shocks.
For an international institution such as JPMorgan, meeting the threshold would be one component of a broader process involving regulatory approval, operational readiness and compliance with Nigerian banking rules.
JPMorgan’s African Expansion Strategy
The proposed Nigerian merchant bank forms part of JPMorgan’s broader interest in expanding its presence across African markets. Chief executive officer Jamie Dimon has previously discussed the bank’s strategy of adding to or deepening its presence in one or two African countries every couple of years, reflecting its interest in opportunities across the continent.
Nigeria’s position as one of Africa’s largest economies, its sizeable corporate sector and its role in regional trade and finance make it an important potential market for international investment banking services.
A licensed merchant bank could help JPMorgan strengthen relationships with Nigerian companies seeking international financing, investors looking for exposure to domestic assets and institutions requiring cross-border financial services.
The expansion could also increase competition in segments such as corporate finance, debt and equity capital markets, and structured trade finance.
Nigeria has recently been included in a JPMorgan emerging-markets government bond index, while the country has also recorded improvements in its external reserves.
CBN Approval Remains Outstanding Step
Despite the reported ₦50 billion deposit, JPMorgan’s proposed merchant banking operation remains subject to regulatory approval by the CBN.
The bank has not publicly disclosed the full scope of services planned for the proposed entity or its total capital commitment beyond the reported regulatory minimum.
If approval is secured in line with JPMorgan’s stated timetable, the establishment of the merchant bank would mark a new phase in the US institution’s Nigerian operations and strengthen its capacity to participate directly in the country’s corporate finance and capital markets.
