American financial institution JPMorgan Chase & Co. has deposited ₦50 billion with the Central Bank of Nigeria (CBN) as it advances plans to establish a licensed merchant banking operation in the country.

The deposit, valued at approximately $38 million, fulfils a key capital requirement for the bank’s application and signals its readiness to expand its Nigerian operations beyond its existing representative office in Lagos.

The payment is among the final regulatory requirements for the proposed licence. However, it does not guarantee approval, as the CBN retains the authority to make the final decision on the application.

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

The proposed expansion would allow the bank to broaden its services to Nigerian businesses, particularly in corporate banking, lending, trade finance, payments and other wholesale financial activities.

JPMorgan has maintained a presence in Nigeria through its Lagos representative office, providing services and advising governments and companies on financial transactions, including Eurobond issuances.

A merchant banking licence would provide a broader platform for the institution to serve large corporations and facilitate domestic and international financial transactions.

The development comes as the lender pursues opportunities to strengthen its presence across Africa and increase its participation in the continent’s corporate and investment banking markets.

JPMorgan declined to comment on the reported deposit, while the CBN had not publicly confirmed its final decision on the application as of the time of reporting.