Present in Lagos since the 1980s, US bank JP Morgan plans to transform its Nigeria representative office into a fully-fledged branch.
The New York based financial institution, managed in Nigeria by Dapo Olagunju will apply to the Central Bank of Nigeria (CBN) for a merchant banking licence in the coming months.
If successful, this new US-Nigeria entity will be able to offer dollar loans to large companies in addition to its advisory and asset management activities.
This is part of JP Morgan’s and its CEO, Jamie Dimon’s strategy to increase its presence on the African continent.
In mid-October, Dimon visited Nigeria, where he met the CBN Governor Mr. Olayemi Cardoso.
He also visited South Africa, where JP Morgan has a subsidiary and Kenya. Before the trip Mr. Dimon stressed that he wanted to strengthen the bank’s presence in Africa, by adding a country or two every couple of years or so.
JP Morgan has since opened offices in Abidjan, Cotedvoire and Nairobi, Kenya to deepen its presence in Africa.
The strategy for JP Morgan in Africa is to accompany countries in issuing Eurobonds. The bank participated in Nigeria’s 2024 fundraising on the international market.
JP Morgan is coming into the merchant banking space to compete with existing players the country including Coronation Merchant Bank Limited, FBNQuest Merchant Bank Limited, FSDH Merchant Bank Limited, Greenwich Merchant Bank Limited, Rand Merchant Bank Nigeria Limited, among others.
