NOVA Bank plans to shift operating license from national to regional

NOVA Bank has announced plans to change its operating license from a National Commercial Bank to a Regional Commercial Bank.

The bank’s management says this strategic move is aimed at improving operational efficiency and focusing more on key regional markets. They believe this shift will help them better manage resources, serve customers effectively, and grow sustainably.

Acting Managing Director, Mrs. Chinwe Iloghalu, explained that after reviewing the Central Bank of Nigeria’s recapitalisation directive in March 2024, the bank chose this route to optimize capital and ensure steady growth. She added that the bank’s shareholders are committed to injecting an additional ₦24 billion through a rights issue by the end of 2025. This will help NOVA exceed the capital requirements for regional banks well before the 2026 deadline.

The bank also stated that its financial health remains strong, with solid capital buffers and growing profits. Recently, Global Credit Rating reaffirmed NOVA Bank’s BBB rating with a stable outlook, citing good liquidity and asset quality.

Despite the license change, NOVA Bank plans to open three new branches soon in Owerri, Port Harcourt, and Abuja. It is also investing in digital banking to ensure customers get fast and secure services across all channels.

Chairman Mr. Phillips Oduoza said this is a deliberate step towards sustainable growth. He added that the bank plans to eventually return to national status within the next three years.

The change reflects ongoing adjustments in Nigeria’s banking sector, with the Central Bank requiring banks to meet higher capital thresholds based on their license type.