JP Morgan, Top US Bank, Seeks Licence to Operate in Nigeria as it Predicts Naira FX Rate in 2025
- A top US investment banker and America’s largest bank, JP Morgan, is seeking a banking licence to operate in Nigeria
- The bank seeks to convert its Lagos representative office into full banking operations, offering dollar-denominated loans
- The move comes as the bank hailed the replacement of NNPC boss Mele Kyari by President Bola Tinubu and the CBN's release of the net FX external reserves
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
An American multinational financial services and investment company, and America’s largest bank, JP Morgan is set to establish a branch in Nigeria by converting its Lagos representative office into a full-fledged business branch.
African Intelligence report disclosed the development, noting that the US banking giant, which has been in Nigeria since the 80s, is set to seek a merchant banking licence from the Central Bank of Nigeria (CBN) in the coming months.

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JP Morgan to begin merchant banking in Nigeria
According to the report, the bank seeks to transform its Nigerian representative office into a 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,” the report said.
JP Morgan keeps mum
However, experts have said that if successful, the bank would expand its services to include dollar-denominated loans for large companies, complementing its existing advisory and asset management operations.
The move aligns with JP Morgan and CEO Jamie Dimon’s plan to boost the bank’s presence across Africa.
JP Morgan’s CEO visits Nigeria
ThisDay reports that Dimon visited Nigeria in October last year, where he met the governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso.
Dimon’s African tour also included visits to big economies on the continent such as South Africa and Kenya.
He reportedly told Reuters of his plan to expand the bank’s presence in Africa by adding a country or two in the coming years.
JP Morgan hails NNPC and CBN
Legit.ng earlier reported that JP Morgan said the change in the leadership of the Nigerian National Petroleum Company Limited (NNPC) and the release of Nigeria’s net foreign exchange reserves (NFER) were changing the tide in the market.
Amid increasing global uncertainty, JP Morgan upheld a positive rating on the Nigerian market, stating it is insulated from US slowdowns.
JP Morgan predicts naira stability
The company disclosed this in its note to investors on Wednesday, April 2, 2025, stating that the Nigerian market provided enough rate protection to ease potential FX losses.
According to the bank, it expects Nigeria's T-Bills to continue to perform well due to imminent catalysts as the Central Bank of Nigeria (CBN) published net FX reserves, while President Bola Tinubu changed the board and management of the NNPC.
JP Morgan hails leadership change in NNPC
It rated the net FX reserve release as a short-term catalyst and NNPC leadership change as a medium-term catalyst.
Legit.ng reported that President Tinubu replaced the NNPC leadership less than 24 hours after CBN released the country’s NFER.
JP Morgan considered the two decisions as a confidence booster for Nigeria, which has battled FX and macroeconomic challenges.
After the decisions, the forex market experienced some stability, though the naira depreciated slightly.
The American lender said that the NFER aligns with expectations, warning that CBN’s commitment to improving reserve quality should not be understated.
CBN claimed that the NFER hit a three-year high of $23.11 billion but failed to publish its short-term and medium-term FX liabilities.
JP Morgan said:
“This is in line with our broader view that the current government (and by extension the CBN) is, indeed, committed to a more market-friendly approach to policymaking,” the bank said.
The ratings agency disclosed that the leadership change in NNPC was a giant step in the oil sector reform plans, saying that a private sector-led NNPC would cause reforms in other oil sectors.
Nigeria’s FX liquidity to improve
The agency said while the NNPC leadership change may lead to an increase in oil production, it should result in improved transparency and better FX to the government.
It disclosed that the country’s current account surplus remains large at $17.5 billion in 2024.
JP Morgan saw the NNPC’s FX financing deals as the next catalyst expected to improve FX liquidity in the near term.

Source: Getty Images
It disclosed that oil swap deals being negotiated by the state oil firm matured, projecting that the NNPC could have about $9.5 billion in new financing deals in the coming months to be used to repay areas owed for petrol imports and boost the nation’s reserve.
Another bank set to commence operation in Nigeria
Legit.ng previously reported that Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), announced that the much-awaited Africa Energy Bank would commence operations in March 2025.
Lokpobiri stated this at the opening of the Sub-Saharan Africa International Petroleum Conference organised by the Petroleum Technology Association of Nigeria on Tuesday, February 12.
The bank was expected to start with an initial investment of approximately $5 billion, sourced from member countries and the African Export-Import Bank (Afrexim Bank).
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Source: Legit.ng

Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng

James Ojo (Copyeditor) James Ojo is a copy editor at Legit.ng. He is an award-winning journalist with a speciality in investigative journalism. He is a fellow of Nigeria Health Watch Prevent Epidemics Journalism Fellowship (2023), WSCIJ Collaborative Media Project (2022), ICIR Health Reporting (2022), YouthHubAfrica’s Basic Education Media Fellowship (2022), Countering the Fake News Epidemic (MacArthur Foundation) 2021, and Tiger Eye Foundation Fellowship. Email: james.ojo@corp.legit.ng