In a statement issued by the bank’s management, the move is aimed at optimising operational efficiency, streamlining service delivery, and deepening market penetration in targeted regions. The bank described the decision as one that aligns with its long-term vision of consolidating strengths and deploying capital more effectively—without compromising innovation, customer experience, or sustainable growth.
“Given the Bank’s current stage of growth, we have chosen the prudent route to optimise what we need, grow efficiently, and scale sustainably,” said Mrs. Chinwe Iloghalu, Acting Managing Director/CEO of NOVA Bank.
Strategic Realignment in the Face of Recapitalisation
The decision follows the CBN’s revised recapitalisation directive issued in March 2024, which requires banks to meet new capital thresholds by Q1 2026. Under the directive:
- National banks must raise their capital base to ₦200 billion, while
- Regional banks are expected to meet a lower threshold of ₦50 billion.
NOVA Bank, formerly a merchant bank, had originally applied for a national license upgrade earlier in the year. However, after reassessing its capital strategy and growth trajectory, the bank has now opted to recalibrate toward regional operations.
According to Mrs. Iloghalu, shareholders have committed to injecting ₦24 billion before the end of 2025 to exceed the required capital base for regional banks, positioning NOVA to meet the CBN’s deadline well ahead of schedule.
Strong Financials Support Transition
Despite the strategic shift, NOVA remains financially strong:
- Profit Before Tax (PBT) rose 200% year-on-year in 2024, per audited results.
- Global Credit Rating (GCR) reaffirmed NOVA’s BBB rating with a Stable Outlook, citing its healthy liquidity, improving earnings, and sound asset quality.
Branch Expansion and Digital Growth
While narrowing its regulatory scope, NOVA is simultaneously expanding its physical footprint, with three new branches set to open in Owerri, Port Harcourt, and Abuja. The move reflects its commitment to customer access and service excellence in its new regional focus.
In parallel, the bank is investing in digital infrastructure, ensuring secure, seamless, and scalable services across its online and mobile platforms.
A Calculated Step, Not a Retreat
Board Chairman Phillips Oduoza framed the decision as a tactical recalibration, not a retreat from national ambitions:
“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.”
CBN’s Recapitalisation Drive
The CBN’s recapitalisation mandate is part of broader efforts to stabilise and strengthen Nigeria’s banking sector. Banks with international licenses must scale up to ₦500 billion in capital, while those with national licenses must meet the ₦200 billion mark. Regional license holders are expected to raise ₦50 billion.
With this repositioning, NOVA joins other banks strategically reviewing their licensing category in response to the CBN's new capital requirements, demonstrating a cautious yet forward-looking approach to growth and compliance.