J.P. Morgan is preparing to open an investment bank in Nigeria before the end of 2026, subject to obtaining the necessary approvals, its managing director for West Africa, Dapo Olagunji, said at a financial dialogue held in Singapore on 8 October.
The project would extend the US group's presence beyond its representative office in Lagos. J.P. Morgan already provides services in Nigeria related to asset management, commercial banking and investment banking, according to the presentation of its activities in the country.
The planned institution could serve companies in financing, market operations and capital transactions. No capital amount, detailed product range or precise opening date has been disclosed.
The announcement does not mean that a licence has already been granted. Dapo Olagunji explicitly made the start conditional on completing the regulatory procedure, and the Central Bank of Nigeria has not published an individual decision on the project.
The Singapore dialogue was organised by the central bank with J.P. Morgan, Nigerian Exchange Group and FMDQ Group. It aimed to bring Nigerian markets closer to Asian investors and institutions ahead of the annual meetings of the IMF and World Bank in Bangkok.
The project comes as the central bank seeks to attract more durable capital and deepen local markets. Its monetary policy committee maintained in September a cash reserve requirement ratio of 16% for investment banks, against 45% for deposit banks.
J.P. Morgan had also included Nigeria in its new frontier markets local-currency bond index, with an announced weighting of 7.4%. Inclusion in an index can increase the visibility of Nigerian securities, but on its own does not guarantee capital inflows.
The planned opening would intensify competition for large financings and market operations in Nigeria. Its timing now depends on the regulator and on the legal establishment of the new entity.