American bank JP Morgan Chase & Co is getting ready to secure a banking license in Nigeria. They have deposited N50 billion, which is about $38 million, with the Central Bank of Nigeria (CBN). Bloomberg shared this news on Tuesday, citing sources familiar with the situation.
This deposit is part of the final steps the bank needs to take before getting approval to operate a merchant banking business in Nigeria. The sources did not want to be named because the process is still private.
Earlier this month, Dapo Olagunju, the managing director of JP Morgan West Africa, announced during the Nigeria-Asia Financial Connectivity Dialogue in Singapore that the bank plans to launch a merchant banking subsidiary in Nigeria.
The CBN worked with JP Morgan, the Nigerian Exchange Group, and FMDQ Group to hold this dialogue.
Bloomberg also reported that JP Morgan, the largest bank in the US, hopes to receive the license by the end of this year or early 2027. This is if they can get all the necessary approvals.
This move is part of JP Morgan's strategy to grow its presence in Africa. They are looking to increase their share of payments, lending, trade finance, and corporate banking in the region.
Currently, JP Morgan has a representative office in Lagos. If the license is granted, it will allow the bank to expand its services, which include asset and wealth management as well as commercial and investment banking in Nigeria.
JP Morgan has been present in Nigeria since 1961. That was when Chase Manhattan Bank, which later became JP Morgan Chase & Co, opened a branch in Lagos. They provided various commercial banking services to local businesses and individuals.
A year before that, Chase International Investment Corporation, part of Chase Manhattan Bank, was the main partner in setting up Nigerian Textile Mills in Lagos. This project is seen as the first major private industrial initiative with American interest in Nigeria.
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