US banking giant JPMorgan Chase & Co has deposited 50 billion naira ($38m) with the Central Bank of Nigeria (CBN) as it seeks a merchant banking licence to expand its operations in Africa’s largest economy.

The capital deposit, placed in a designated regulatory account with the CBN, fulfills a primary statutory requirement for institutions applying for a full banking licence in the country.

The move marks a major step in the New York-based lender’s plans to transition from its current representative office in Lagos to a fully fledged merchant bank. If approved, the licence will allow JPMorgan to offer corporate banking, trade finance, corporate lending, and payment services directly within Nigeria.

Sources familiar with the matter indicated that the bank expects regulatory approval from the central bank by late 2026 or early 2027. Both JPMorgan and the Central Bank of Nigeria declined to comment on the pending application.

Expanding African footprint

While the capital deposit demonstrates financial readiness, the apex bank retains final approval authority under Nigeria’s banking regulations.

JPMorgan has long operated in Nigeria through a representative office, advising local corporate entities and the federal government on sovereign Eurobond issuances and international capital markets.

The application reflects a broader push by the American investment bank to expand its presence across sub-Saharan Africa. The lender has recently restructured its regional leadership, appointing new heads for its operations in Kenya and Ivory Coast alongside a dedicated lead for its sub-Saharan investment banking division.