JPMorgan Chase, the largest bank in the United States, is getting ready to operate as a licensed bank in Nigeria.
The bank plans to set up a merchant bank in Nigeria before the end of 2026, subject to regulatory approval, its West Africa managing director, Dapo Olagunju, said on October 8.
He made the announcement in Singapore, at an event the Central Bank of Nigeria convened with JPMorgan, the Nigerian Exchange Group and FMDQ Group.
The license would let JPMorgan lend to Nigerian companies directly. Until now, it has mostly advised them from the sidelines.
A Deposit Moves the Plan Forward
The bank has already met a key capital requirement. According to Bloomberg, JPMorgan deposited 50 billion naira, about $38 million, with the Central Bank of Nigeria, satisfying a central condition of its merchant banking license application.
That figure is the regulatory minimum. The central bank’s March 2024 recapitalization rules set minimum capital at 50 billion naira for a merchant bank, compared with 500 billion naira for a commercial bank with international authorization and 200 billion naira for one with national authorization.
The approval is still pending. Bloomberg reported that the bank expects its license by the end of 2026 or early 2027.
What a Merchant Bank Does
A merchant bank does not serve ordinary customers. It works with large companies and governments.
A license would allow JPMorgan to offer syndicated loans, project finance and local-currency treasury services directly. Its current office mainly passes business to the bank’s global platforms. The new entity would also be able to make dollar-denominated loans to large corporations, alongside its advisory and asset management work.
The choice is deliberate. A merchant license costs a tenth of the capital required for a full commercial license. It also keeps JPMorgan out of retail banking, where Nigerian lenders and fintech companies already compete fiercely.
Four Decades in Lagos
JPMorgan is not new to Nigeria. The bank has kept a presence in Lagos since the 1980s. That presence has been a representative office, which can market services but cannot take deposits or lend locally.
The bank has been laying groundwork for some time. In April 2025, Africa Intelligence reported that JPMorgan planned to turn its Lagos representative office into a full branch and apply for a merchant banking license.
It has also worked closely with the Nigerian government. In 2023, it helped arrange Nigeria’s first international fundraising since 2022, when the government raised $2.2 billion against $9 billion in orders.
Dimon’s Africa Push
The Nigeria plan is part of a wider strategy led by JPMorgan’s chief executive, Jamie Dimon.
In October 2024, during his first visit to Africa in seven years, the bank opened representative offices in Kenya and Ivory Coast. Mr. Dimon said at the time that the bank wanted to open in more African countries so the next generation would have a footprint there. On that trip, he met with Olayemi Cardoso, governor of the Central Bank of Nigeria.
Going Against the Tide
The move stands out because many foreign banks have been leaving Africa. JPMorgan’s plans come as several foreign lenders scale back their presence on the continent.
It is not the only one heading the other way. South Africa’s Absa Group is considering converting its Nigerian representative office into a merchant bank.
If approved, JPMorgan would join an established group. Global and pan-African lenders already holding Nigerian licenses include Citibank Nigeria, Standard Chartered and Rand Merchant Bank. Rand Merchant Bank is one of six licensed merchant banks, alongside Coronation, FBN, FSDH, Greenwich and Nova.
Why It Matters for Tech
The license could matter beyond oil, telecoms and banking. Nigeria’s larger technology companies need dollar financing and help reaching international capital markets. A local merchant bank could bring listing and debt advice closer to Nigerian fintechs.
With a license, JPMorgan could turn its advisory presence into a local platform for corporate finance, capital markets and wholesale banking, potentially increasing competition and linking Nigerian businesses more directly to international capital.
