Chase & Co. deposited 50 billion naira ($38 million) with the Central Bank of Nigeria as it moves closer to securing a banking license in Africa’s most populous nation, according to people familiar with the matter.

The deposit, one of the final regulatory requirements for obtaining approval, signals the largest US lender’s readiness to launch a merchant-banking operation in Nigeria should its application be approved, said the people who asked not to be identified because the process is private.

The lender expects to receive the license by the end of 2026 or in early 2027, if it’s able to secure approvals, the people said. There are no guarantees that JPMorgan can secure a license, as the central bank still has to make a final decision, said the people.

JPMorgan declined to comment. A spokesman for the central bank didn’t immediately respond to a request for comment.

Under Nigerian banking regulations, applicants are required to place capital in a dedicated account with the central bank as part of the licensing process, demonstrating that sufficient funds are available to support planned operations.

The move marks the latest step in JPMorgan’s expansion across Africa, where the lender is seeking a larger share of trade finance, lending, payments and corporate-banking business. The New York-based firm currently operates a representative office in Lagos, Nigeria’s commercial capital, and wants a banking license to broaden its product offering in the country.

JPMorgan has bolstered its African investment-banking capacity in recent months, appointing Edward Bell to lead investment banking in sub-Saharan Africa. The lender previously also named Sailepu Montet to head its Kenya office and Michael Ahonzo Avou to oversee operations in Ivory Coast.