NOVA Commercial Bank has experienced significant leadership instability over the past year, with three different individuals assuming the role of Managing Director/Chief Executive Officer (MD/CEO) in just a span of 12 months. The latest development sees Chinwe Iloghalu stepping in as the Acting MD/CEO following the departure of Adebowale Oyedeji, who moved on to become the Group Managing Director of FBN Holdings.
Oyedeji’s appointment as CEO in January 2024 marked the second leadership change at NOVA in just a few months. He succeeded Nath Ude, who completed his tenure as MD in November 2023. However, Oyedeji’s term was short-lived, as he left after only 11 months at the helm.
Iloghalu now finds herself at the forefront of a bank that is in the process of a critical recapitalization effort, aimed at meeting the Central Bank of Nigeria’s (CBN) higher capital requirements for banks with commercial licenses. This leadership vacuum comes at a time when NOVA Bank is targeting an additional N160 billion in equity capital, planned to be raised through rights issues, private placements, and a potential IPO by 2026.
Despite a promising start with Oyedeji, who led the bank to achieve a pre-tax profit of over N2 billion for the first quarter of 2024, NOVA Bank’s capital raise is still well below the target needed to meet the CBN’s new requirements. The frequent changes in leadership raise questions about the stability and continuity of the bank’s long-term strategy.
