The largest bank in the United States wants to become a licensed bank in Nigeria. JPMorgan plans to set up a merchant bank there before the end of 2026, subject to regulatory approval, according to its West Africa managing director, Dapo Olagunju, who spoke in Singapore on October 8. The event was convened by the Central Bank of Nigeria with JPMorgan, the Nigerian Exchange Group and FMDQ Group.
The deposit that matters
JPMorgan has already met a key condition. Bloomberg reports that it deposited 50 billion naira, about $38 million, with the Central Bank of Nigeria as part of its merchant banking license application. That amount is exactly the least under the CBN capital rule set by the March 2024 recapitalization rules. A commercial bank with international authorization needs 500 billion naira, and one with national authorization 200 billion.
Approval is still pending. The bank expects the license by the end of 2026 or early 2027.
What changes with a license
Until now, JPMorgan has mostly advised Nigerian companies from the sidelines. Its Lagos presence, in place since the 1980s, is a representative office, which can market services but cannot take deposits or lend locally. With a merchant license, it could offer syndicated loans, project finance, local-currency treasury services and dollar-denominated loans to large corporations. A merchant license needs a tenth of the capital of a full commercial one and keeps JPMorgan out of retail banking, where Nigerian lenders and fintechs already compete hard.
The upside could reach beyond traditional sectors. Larger digital companies in Nigeria need dollar financing and help reaching international capital markets, and a local merchant bank could bring listing and debt advice closer to them.
Part of a bigger Africa push
The plan fits a wider strategy led by chief executive Jamie Dimon. In October 2024, during his first Africa visit in seven years, the bank opened representative offices in Kenya and Ivory Coast, and he met CBN governor Olayemi Cardoso. In 2023, JPMorgan also helped arrange Nigeria’s first international fundraising since 2022, which raised $2.2 billion against $9 billion in orders.
Going against the tide
Many foreign banks have been scaling back in Africa, so JPMorgan’s move stands out. South Africa’s Absa is considering turning its Nigerian representative office into a merchant bank. If JPMorgan gets its license, it will join lenders such as Citibank Nigeria, Standard Chartered and Rand Merchant Bank, which is one of six licensed merchant banks along with Coronation, FBN, FSDH, Greenwich and Nova.
For readers who track global tech news, it’s a useful reminder that finance and technology in Nigeria keep growing closer.
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