Nigeria’s Newest Bank To Raise N200bn After Opening First Branch, CBN Sets Deadline
- Nova Bank Limited has finally kicked off operation and has opened its first branch in Lagos state with plans for more
- The latest commercial bank is coming at a time when there is a new directive from the CBN for banks to meet new minimum capital requirement
- It is understood that there is total commitment from the bank's shareholders to raise the expected recapitalisation funds before deadline
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nova Bank Limited's shareholders have promised to raise new funds to meet the Central Bank of Nigeria (CBN) capital requirement of N200 billion to operate as a national bank.
Phillips Oduoza, the bank's chairman, made this known during the opening of the bank's first branch as a national commercial bank in Lagos state.
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Nigeria’s newest commercial bank, Nova, opens first branch, promises more jobs to Nigerians
Source: Getty Images
In March 2024, Legit.ng reported that the Central Bank of Nigeria unveiled new minimum capital requirements for banks, capping the minimum capital base for commercial banks with national authorisation at N200 billion.
The new capitalisation directive became effective on April 1, 2024 with the deadline fixed for March 31, 2026.
NOVA determined to meet targets
Speaking on the CBN directive, Oduoza said the bank's shareholders raised funds through a rights issue in 2023 and promised to bring new funds for the ongoing recapitalisation exercise.
Regarding the bank's modalities as a commercial bank, Oduoza said Nova Bank will be looking beyond profitability in its operations
He said:
"We are not here to maximize profit but to support businesses and extend our services to the retail market. Our goal is to positively impact the Nigerian banking sector.
"We have a long-term vision to make a significant impact on society."
He lauded the Central Bank of Nigeria (CBN) and the Lagos state government for their support.
He said operating as a commercial bank provides a greater opportunity for the bank to employ more people and support more businesses.
Oduoza added:
"Having a commercial bank license provides us with opportunities for increased job creation. Currently, our workforce consists of over 100 people.
"As we expand to more locations in Lagos, we plan to employ additional staff. We will also be opening branches in Abuja, Kano, and other parts of the country.
NDIC commences paying Heritage Bank depositors."
Legi" .ng earlier reported that the Nigeria Deposit Insurance Corporation (NDIC) has begun paying customers of the defunct Heritage Bank two weeks after the Central Bank of Nigeria (CBN) revoked the bank.
A bank customer said he received the N10,000 left in his account with Heritage Bank.
Ayodeji Olowe, founder of the loan management system Lendsqr, reportedly said the NDIC deposited the money in his alternative account using his BVN.
Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
