NOVA Bank’s Years of Leadership Instability:  Chinwe Iloghalu Steps in as MD/CEO

NOVA Commercial Bank has witnessed substantial leadership instability over the past year, following the assumption of different individuals on the role of Managing Director/Chief Executive Officer (MD/CEO) in 12 months.

Chinwe Iloghalu now steps in as the Acting MD/CEO following the departure of Adebowale Oyedeji, who became the Group Managing Director of FBN Holdings.

Oyedeji’s appointment as CEO in January 2024 was the second in the leadership change at NOVA in just a few months as he succeeded Nath Ude, who completed his tenure as MD in November 2023. Oyedeji’s term was brief, as he left after only 11 months as the MD.

Now, Iloghalu leads 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. 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.

Oyedeji led the bank to achieve a pre-tax profit of over N2 billion for the first quarter of 2024, but NOVA Bank’s capital raise is still well below the target needed to meet the CBN’s new requirements.

Pundits are quick to say that the frequent changes in NOVA leadership might have contributed to the dwindling bank’s long-term strategy to achieve its target.