JPMorgan Chase, one of the world’s largest financial institutions, has deposited ₦50 billion, equivalent to about $38 million, with the Central Bank of Nigeria (CBN) as it moves closer to securing a licence to operate a merchant bank in Nigeria.

According to a Bloomberg report published on Tuesday, the deposit is one of the final regulatory requirements in the American banking giant’s application to expand its operations in Africa’s largest economy.

Sources familiar with the process said JPMorgan expects to obtain the licence by the end of 2026 or early 2027, subject to regulatory approval.

The proposed merchant banking operation would expand the bank’s presence in Nigeria beyond its existing representative office in Lagos, through which it serves clients in the country and across sub-Saharan Africa.

JPMorgan has maintained a longstanding presence in Nigeria’s financial markets, advising governments and companies on major transactions, including international bond issuances.

A merchant banking licence would potentially enable the bank to deepen its engagement with Nigerian businesses, governments and institutional investors, particularly in areas such as corporate finance, capital raising and financial advisory services, subject to the scope of its regulatory authorisation.

The move comes amid sustained international interest in Nigeria’s financial sector, as the country seeks to attract foreign investment, deepen capital markets and strengthen its banking industry.

However, the ₦50 billion deposit does not constitute final approval. The bank must still secure the CBN’s authorisation before commencing the proposed merchant banking operations.

Neither JPMorgan nor the CBN had publicly confirmed the expected licensing timeline as reported.