LAGOS — JP Morgan Chase & Co. has deposited N50 billion, about $38 million, with the Central Bank of Nigeria (CBN) as one of the final regulatory steps towards a licence to operate a merchant bank in Nigeria, Bloomberg reported on Tuesday, citing people familiar with the matter.

The amount matches the minimum capital of N50 billion that the CBN set for merchant banks under its March 2024 recapitalisation rules. The deposit does not guarantee approval: the central bank must still take a final decision on the application. The American bank hopes to receive the permit by the end of the year or early in 2027, provided it meets the remaining requirements. It currently has only a representative office in Lagos, and plans to expand payments, lending, trade finance and corporate banking services across Africa.

Earlier this month, the Managing Director of JP Morgan West Africa, Dapo Olagunju, disclosed the plan for a Nigerian subsidiary at the Nigeria-Asia Financial Connectivity Dialogue in Singapore, an event convened by the CBN, JP Morgan, Nigerian Exchange Group and FMDQ Group.

The bank's history in Nigeria goes back decades: its predecessor, Chase Manhattan, opened a branch in Lagos in 1961.

JP Morgan declined to comment on the report, and a CBN spokesperson did not immediately respond to requests for comment.