JPMorgan is seeking approval to establish a merchant bank in Nigeria before the end of 2026, a move that would give the American banking giant a stronger local presence as the country works to attract investors after years of economic upheaval.
For Nigerian businesses, the attraction is straightforward: another possible source of financing and access to international markets. But the deal is not done. There is no confirmed final licence, no disclosed local investment figure and no firm opening date.
A familiar name wants a bigger role
Dapo Olagunji, J.P. Morgan’s managing director for West Africa, disclosed the plan at the Nigeria–Asia Financial Connectivity Dialogue in Singapore on October 8. Operations are being targeted before year-end, subject to regulatory approval.
JPMorgan is hardly new to Nigeria. Its history of operations in the country goes back to a Chase Manhattan branch in Lagos in 1961. In 1975, a subsidiary of Morgan Guaranty Trust Company, another predecessor, helped establish a merchant bank in Lagos.
The group already advises and serves corporate and institutional clients in Nigeria. What is being proposed now is a locally licensed merchant bank with the potential to conduct a wider range of banking business on the ground.
Unlike a retail bank, a merchant bank concentrates largely on corporate and institutional customers. It may provide loans, help arrange bond sales and advise on acquisitions or major investments, depending on the activities covered by its licence.
For a manufacturer trying to build a new plant, that could eventually mean another lender to approach. For a Nigerian company seeking overseas investors, it could mean easier access to an international network. Neither outcome is guaranteed, and smaller businesses may see little immediate difference.
There is certainly demand for large-scale finance. Dangote’s refinery share offering is testing investor appetite for one of Nigeria’s biggest industrial assets, while the government has begun preparations for a possible Eurobond issue. JPMorgan has not been announced as a participant in either transaction.
Nigeria has spent years trying to persuade foreign investors that they can bring money into the country and get it out again without being trapped by currency shortages. Changes to the foreign-exchange system have improved access, although sharp movements in the naira and the high cost of borrowing remain concerns.
The IMF’s June 2026 assessment acknowledged stronger external buffers and better-functioning currency markets. It also noted the painful reality behind the financial headlines: poverty had reached 63 percent on the national measure, and an estimated 27 million people faced food insecurity in late 2025.
Those figures help explain why renewed interest from overseas banks should not be confused with a recovery in household living standards. As Africa Briefing has examined in its analysis of changing investment patterns across Africa, capital is returning selectively to markets where investors see clearer rules and credible business opportunities.
At the Singapore dialogue, Central Bank of Nigeria governor Olayemi Cardoso said the challenge was to build the ‘confidence for capital to stay, return and grow’. A new international bank may help that effort, but it cannot resolve Nigeria’s wider economic difficulties by itself.
Another sign of investor interest
JPMorgan’s plan follows a separate decision in September to include Nigerian government bonds in its new GBI-EM Edge index, with a 7.4 percent weighting. The new benchmark covers frontier-market local-currency debt. It does not restore Nigeria to the bank’s flagship emerging-market bond index, from which it was removed in 2015.
Being in an index gives Nigerian bonds greater visibility among investors. It does not guarantee purchases or protect them from currency losses. That distinction matters in a market where high returns can come with substantial risks, as Africa Briefing noted in its coverage of African local-currency debt.
