(Ecofin Agency) - Shareholders of the Nigerian investment bank, Nova Merchant Bank Limited, have approved its transformation into a commercial bank. This move will help Nova Merchant expand its range of banking products and services

On July 20, Nova Merchant Bank Limited announced that it received approval from its shareholders to transform into a commercial bank. The bank's chairman, Phillips Oduoza, explained that this decision to transition will help streamline its operations, bolster its financial stability, and foster sustainable growth across its businesses.

He said, “I am excited about the prospects of NOVA as we embark on this new growth phase. This strategic move is in line with our vision of expanding operations and diversifying services while providing exceptional services to our valued customers.”

Following the shareholders' approval, Nova Merchant Bank will seek a commercial banking license from the Nigerian bank regulator. This license will help the bank extend its financial services throughout Nigeria. The transformation aims to bolster its client base, increase revenues, and improve returns.

In April, Nova Merchant Bank Limited released its audited results for the year ending December 31, 2022, indicating plans for more growth and opportunities for clients and the business.  The bank, which reported a 107.9% increase in pre-tax profit to 3.50 billion naira ($4.3 million) by the end of 2022, intends to invest in new technologies, including its digital platform, to create a new customer service experience.

Chamberline Moko