Largest U.S. bank JPMorgan moves closer to launching in Nigeria, here’s why this matters

JPMorgan Chase is getting closer to obtaining a banking license in Nigeria as Bloomberg reports that the largest U.S. lender has deposited 50 billion naira ($38 million) with the Central Bank of Nigeria, citing sources familiar with the matter.

The deposit is one of the last regulatory requirements for obtaining approval and shows J.P. Morgan’s readiness to open a merchant banking business in Africa’s most populous country should its application be approved, the sources told Bloomberg. If given the green light, the bank will serve major Nigerian companies, multinational corporations, financial institutions, and sovereign entities.

JPMorgan hopes to receive the license by the end of this year or in early 2027. Per Nigeria’s banking regulations for license approval, applicants must deposit capital in a dedicated central bank account to show they have enough funds to support their operations.

The bank currently has a representative office in Lagos, Nigeria’s commercial capital, but wants a banking license to expand its product offering in the country or establish a larger operating platform in one of Africa’s biggest financial markets, according to the Insider.

“The bank could use the operation to serve large Nigerian and multinational companies seeking corporate finance, cross-border payments, trade finance, treasury services and access to global capital markets,” the outlet added.

The entry of the largest U.S. bank will also put pressure on established Nigerian commercial and merchant banks to upgrade their corporate advisory and wholesale services, analysts say.

This initiative is in line with JPMorgan’s broader strategy across the African continent, which includes bolstering its investment-banking operations in sub-Saharan Africa and appointing senior executives to supervise its operations in Côte d’Ivoire and Kenya.

The New York-based firm appointed Edward Bell to lead investment banking in sub-Saharan Africa and named Sailepu Montet to head its Kenya office. Michael Ahonzo Avou was also appointed to oversee operations in Côte d’Ivoire.

If the Nigeria application is approved, the proposed operation will give major Nigerian businesses another way to gain direct access to global capital and international financing opportunities.

Four months ago, reports said JPMorgan, the largest U.S. bank with about $5 trillion in assets, was planning to expand its retail banking operations in Europe, seeking to add at least three more countries beyond Germany and the U.K. by the end of 2030.

Those countries could include France, Italy and Spain, sources told the Financial Times.

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