NOVA Bank, in a strategic shift, has announced plans to change its operating license from that of a National Commercial Bank to a Regional Commercial Bank.
According to a statement from the management of the bank, this move is aimed at optimising operational efficiency and deepening its impact within key markets.
The management of the bank noted that this policy shift aligns with its long-term vision to consolidate its strengths, streamline its services, and deploy capital more effectively within targeted regions, without compromising its commitment to innovation, customer satisfaction, and sustainable growth.
In order to achieve this repositioning, NOVA Bank pointed out that it has applied to the Central Bank of Nigeria (CBN) to recategorize its operating license from a National to a Regional Commercial Banking license
Prudent approach
The bank said that it maintains a strong financial position, underpinned by robust capital adequacy, liquidity ratios, and a consistent growth trajectory.
NOVA’s Acting Managing Director/Chief Executive Officer, Mrs. Chinwe Iloghalu, explained that following the CBN revised recapitalisation directive in March 2024, the bank reviewed its growth trajectory and capital utilisation strategy.
She said, “Given the Bank’s current stage of growth, we have chosen the prudent route to optimise what we need, grow efficiently, and scale sustainably. This is a major strategic positioning that will ensure continued efficiency in the deployment of assets and resources.’’
Mrs. Iloghalu added, “Indeed, our shareholders have shown strong commitment to ensuring full capitalisation through rights issue by injection of additional 24 billion before the end of 2025 to exceed the prescribed capital for regional Banks well ahead of the 2026 CBN deadline.’’
BBB rating reaffirmed by GCR
Global Credit Rating (GCR) recently reaffirmed NOVA Bank’s BBB rating with a Stable Outlook, citing the Bank’s healthy liquidity profile, improving earnings, and sound asset quality.
The Bank’s audited 2024 financials revealed a 200% year-on-year increase in profit before tax (PBT), alongside improvements across all key performance indicators.
While transitioning to a regional license, NOVA Bank says it remains committed to expanding its physical and digital presence. The Bank is set to launch three new branches in Owerri, Port Harcourt, and Abuja in the coming weeks, reinforcing its commitment to customer accessibility and service excellence.
Simultaneously, NOVA is investing in its digital banking infrastructure, ensuring customers continue to enjoy secure, seamless, and convenient banking experiences across platforms.
The Chairman of the Board, Mr. Phillips Oduoza, noted that NOVA remains committed to its vision and is thankful for the continued trust of its customers, shareholders, and regulators.
“Every decision we make is deliberate and strategic, guided by sound governance and market insight. Transitioning to a regional license is a recalibration, giving us room to grow optimally, build capacity, and position ourselves for a full national rollout in the next 36 months,” said Oduoza.
What you should know
Recall that in June 2024, NOVA, which was then a merchant bank, submitted its capital raising plan to the CBN as part of its transition to a national commercial banking license.
The financial institution had asked the apex bank earlier that year for an upgrade so that it could become a member of the league of banks with national authorization. This request was made ahead of the CBN’s recapitalisation notice.
Deposit money banks with an international license are expected to have their capital base pushed up to N500 billion at the end of Q1-2026. A national banking license requires that a bank’s share capital and premium sum up to N200 billion.
