JP Morgan Sets Eyes on Nigeria with Merchant Bank License Bid

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JP Morgan Chase & Co., one of the world’s leading financial institutions, is looking to strengthen its presence in Nigeria by seeking a merchant banking license from the Central Bank of Nigeria (CBN).

This move aims to deepen its presence in Africa’s largest economy and aligns with the bank’s long-term vision under CEO Jamie Dimon to strengthen its footprint across the continent.

JP Morgan has maintained a presence in Nigeria since the 1980s, initially through a representative office in Lagos. This office, under the leadership of Dapo Olagunju, JP Morgan’s Head of West Africa, has primarily focused on advisory services and asset management. It mainly serves corporations, high-net-worth individuals, and government entities.

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The proposed expansion involves transforming the existing Lagos representative office into a fully operational business branch. If approved, this license would broaden the scope of services the bank can offer in Nigeria.

Beyond its current offerings of advisory and asset management, JP Morgan aims to introduce dollar-denominated loans for large corporations. This would provide Nigerian businesses with greater access to foreign capital.

Jamie Dimon recently visited Nigeria in October 2024, where he met with CBN Governor Olayemi Cardoso. During the visit, Dimon also attended the 30th anniversary of the Nigerian Economic Summit Group, sharing insights on global markets and financial innovation, signaling the bank’s intent to play a more active role in Nigeria’s economic development.

Read: JPMorgan CEO Jamie Dimon Arrives in Kenya, Meets President Ruto

The expansion comes at an important time for Nigeria, which is implementing economic reforms to attract foreign investment and stabilize its financial markets. The bank has already supported Nigeria’s international fundraising efforts, notably participating in the country’s $2.2 billion Eurobond issuance in 2023, which was oversubscribed by $9 billion.

Jamie Dimon has expressed ambitions to grow the bank’s presence on the continent by adding operations in one or two new countries every couple of years. The bank already operates in South Africa, where it has a subsidiary, and recently established representative offices in Kenya and Côte d’Ivoire in 2024.

Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.