See how Nigerian bank plans to meet CBN’s N200bn directive before deadline

• Nova Bank Limited has finally kick off operation and has opened its first branch in Lagos state with plans for more
• The latest commercial bank is coming at a time there is a new directive from the CBN for banks to meet new minimum capital requirement
• There is full commitment from the shareholders to raising new the expected recpaitalisation 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 shareholders have promised to raise new funds to meet the Central Bank of Nigeria (CBN) recapitalisation deadline.

This promise was made by Phillips Oduoza, the Bank’s Chairman during the opening of the bank’s maiden branch as a national commercial bank in Lagos.

Nova Bank kicks off operations in Nigeria Photo credit: VioletaStoimenova
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 capitalization directive is expected

NOVA determine to meet targets

Speaking on the directives, Oduoza said that the bank’s shareholders had raised funds through a rights issue last year and promised to bring new funds for the ongoing recapitalization exercise.

Regarding the bank’s operational modalities as a commercial bank, Oduoza said Nova Bank will be looking beyond profitability in its operations

He said:

“We are not here to maximise profit but to support businesses and extend our services to the retail end of the market. We want to impact the Nigerian banking sector positively.We have long term goal to impact society”.

He lauded the Central Bank of Nigeria (CBN) and Lagos State Government for their support.

He said operating as a commercial bank provides greater opportunity for the bank to employ more people and support more businesses.

Oduoza added:

“Having a commercial bank licence gives us opportunity for more job creation. We are over 100 people in our workforce. We are going to employ more people as we branch out to more locations in Lagos. We will also open branches in Abuja, Kano and other parts of the country.”

NDIC commences paying Heritage Bank depositors

Legit.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’s license.

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.

Source: Legit.ng