NOVA Bank refines strategy for sustainable growth, seeks regional license to deepen market impact

…Set to Open New Branches in Owerri, Abuja, and Port Harcourt

NOVA Bank has announced a strategic shift in its operational model, with a move to transition from a national commercial banking license to a regional one. This, according to the bank’s management, is a deliberate effort to streamline operations, enhance capital efficiency, and deepen its footprint in key markets.

The bank has formally submitted an application to the Central Bank of Nigeria (CBN) to recategorize its license to that of a regional commercial bank. The decision comes on the heels of a comprehensive review of its growth trajectory and capital deployment plans, particularly in light of the CBN’s revised recapitalisation directive issued in March 2024.

Acting Managing Director/Chief Executive Officer of NOVA Bank, Mrs. Chinwe Iloghalu, explained that the transition is part of a broader strategic plan aimed at consolidating the bank’s strengths while pursuing organic growth in select regions.

“Given our current stage of growth and the evolving regulatory landscape, we believe this strategic repositioning will allow us to optimise resource allocation, grow efficiently, and scale sustainably,” said Iloghalu. “We’re also pleased to confirm that our shareholders have committed to injecting an additional ₦24 billion through a rights issue before the end of 2025. This will ensure we surpass the capital threshold for regional banks well ahead of the 2026 deadline set by the CBN.”

Despite the shift in license scope, NOVA continues to demonstrate strong financial performance. The bank’s audited 2024 financial statements show a more than 200% year-on-year increase in profit before tax (PBT), alongside solid improvements across key performance indicators. It also maintains robust capital adequacy and liquidity ratios, reflecting sound financial health.

This strength was recently affirmed by Global Credit Rating (GCR), which reaffirmed NOVA Bank’s “BBB” rating with a Stable Outlook. The rating agency highlighted the bank’s healthy liquidity profile, improving earnings, and high asset quality as indicators of resilience.

As part of its expansion strategy, NOVA is set to open three new branches in Abuja, Owerri, and Port Harcourt in the coming weeks. The new locations aim to improve physical accessibility while complementing the bank’s investments in its digital infrastructure to deliver secure, seamless, and customer-friendly banking experiences.

Chairman of the Board, Mr. Phillips Oduoza, expressed confidence in the bank’s renewed direction and thanked customers, shareholders, and regulators for their continued support.

“Our move to a regional license is a calculated recalibration, allowing us to build capacity and grow optimally within our target markets,” said Oduoza. “We are positioning NOVA to return to a national footprint within the next 36 months—better capitalised, more efficient, and even more customer-centric.”

The bank reaffirmed its commitment to innovation, operational excellence, and sustainable growth as it enters this new phase of its evolution.