AMERICAN multinational banking institution JPMorgan Chase & Co, is closer to getting a merchant banking licence in Nigeria after depositing N50 billion (about $38 million) with the Central Bank of Nigeria (CBN), Bloomberg reported on Tuesday.

Citing sources with knowledge of the matter, the report said the deposit is among the last regulatory requirements the American bank must meet before it can be approved to run a merchant bank in Nigeria. The sources spoke anonymously because the process is not public.

The N50 billion is the minimum paid-up capital for a nationally licensed merchant bank under the CBN’s recapitalisation framework. However, the deposit does not guarantee approval, as the apex bank must still make a final decision on the application.

Bloomberg said the bank expects to receive the licence by the end of 2026 or in early 2027, if all approvals are secured.

Earlier this month, the Managing Director of JPMorgan West Africa, Dapo Olagunju, announced the plan to set up a merchant banking subsidiary in Nigeria. He spoke at the Nigeria-Asia Financial Connectivity Dialogue in Singapore, which the CBN convened with JPMorgan, the Nigerian Exchange Group and FMDQ Group.

JPMorgan currently operates a representative office in Lagos and has advised Nigerian governments and companies on Eurobond issuances and other transactions. A licence would let it move into wider wholesale banking. Depending on the scope of approval, this could include corporate lending, treasury services, capital markets transactions and asset management.

The application is part of the bank’s plan to grow its share of payments, lending, trade finance and corporate banking across Africa. For large Nigerian companies, a licensed JPMorgan could offer another route to international financing, structured deals and global investors. It could also increase competition in wholesale banking, particularly for multinationals and big corporate clients, and put pressure on the Nigerian and foreign banks that serve them. The move comes as Nigeria pursues foreign exchange reforms to restore investor confidence.