JP Morgan and Absa Group Plan Expansion into Nigeria

JP Morgan, the world's largest bank by market capitalization with over $4.1 trillion in assets, plans to initiate merchant banking operations in Nigeria before the end of 2026. Dapo Olagunji, the bank's managing director for West Africa, announced this at the Nigeria-Asia Financial Connectivity Dialogue in Singapore.

The expansion is contingent upon regulatory approval and aims to strengthen existing relationships in Nigeria. Concurrently, South Africa's Absa Group is deliberating whether to convert its Nigerian representative office into a full banking operation.

Chief Executive Kenny Fihla confirmed these discussions in August, emphasizing the need for diversification across markets, as South Africa, Kenya, and Ghana accounted for over 80% of Absa's profit in the first half of 2026. Nigeria's economic indicators, including a rise in foreign exchange reserves to $55 billion and a 74.7% year-to-date return on the stock market, have made it an attractive market for these banks.