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Global banking leader JP Morgan is reportedly advancing plans to transform its Lagos representative office into a fully licensed merchant banking operation, signaling a strategic commitment to deepening its footprint in Nigeria’s financial landscape.
According to a report by Africa Intelligence, the American financial institution is preparing to submit a formal application to the Central Bank of Nigeria (CBN) in the coming months for a merchant banking license. This move underscores JP Morgan’s long-term vision of scaling operations across Africa through regulatory-compliant expansion and diversified service delivery.
The bank, which has maintained a presence in Nigeria since the 1980s, is currently led locally by Dayo Olagunju. With this license, JP Morgan aims to go beyond its traditional advisory and asset management services by offering dollar-denominated loans to large-scale corporations—introducing new instruments for capital mobilization and financial risk management in the region.
This strategic regulatory engagement aligns with Nigeria’s push to deepen its financial services sector and attract foreign investment through robust compliance frameworks and governance standards. The entry of a global player like JP Morgan into the merchant banking space reinforces confidence in the regulatory environment and the potential for innovative financial services growth.
The move follows CEO Jamie Dimon’s visit to Nigeria in October 2024, during which he held high-level discussions with CBN Governor Olayemi Cardoso. Dimon’s visit was part of a broader African tour that included stops in South Africa—where JP Morgan operates a subsidiary—and Kenya, reflecting the bank’s commitment to expanding in key African markets.
Ahead of the trip, Dimon shared his vision with Reuters, stating that JP Morgan intends to establish or reinforce its presence in African markets every few years as part of a broader strategy to support sustainable economic growth through financial inclusion and regulatory alignment.
JP Morgan has also established regional offices in Abidjan and Nairobi, strengthening its role as a catalyst for cross-border financial integration and capital market development. The bank has notably supported African sovereigns in Eurobond issuances, including Nigeria’s 2023 international capital raise, which secured $2.2 billion under President Bola Tinubu’s administration—despite facing an oversubscription of $9 billion.
As JP Morgan moves closer to acquiring a merchant banking license in Nigeria, its expansion is expected to contribute significantly to the evolution of the country’s financial services sector, with increased focus on compliance management, regulatory reporting, and innovative lending solutions tailored for the African market.
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