“Preferred, Not Largest: We Will Not Chase Size At the Expense Of Quality,” Nova Bank CEO Anele Declares

In a financial industry increasingly defined by balance-sheet competition, scale wars and aggressive consolidation narratives, the Managing Director and Chief Executive Officer of Nova Commercial Bank Limited, Mr. Jude Anele, has drawn a firm line in the sand: the bank will not be driven by size, but by preference, discipline and quality.

Speaking on the bank’s post-recapitalisation strategy, CEO Anele said the institution’s new capital position is not a survival milestone, but the launchpad for a deliberately structured growth agenda aimed at redefining mid-tier banking in Nigeria.

“Our position is clear: a well-capitalised, relationship-driven mid-tier commercial bank with the advisory depth of a merchant bank and the reach of a commercial institution,” he said, adding “We are not chasing size, we are building preference.”

For the Managing Director, the recapitalisation exercise has provided more than regulatory comfort. It has, according to him, unlocked the capacity to execute a targeted expansion strategy focused on underserved segments of the Nigerian economy.

He stressed that Nova’s next phase will be anchored on three critical gaps in the market: SME financing, retail banking penetration, and trade and supply chain finance.

“First, SME credit, particularly in sectors and corridors where collateral-led credit models have excluded creditworthy businesses. Second, retail banking, serving everyday Nigerians through our Phygital model in communities where we already have commercial roots. Third, trade and supply chain finance,” he explained.

The bank’s approach, he noted, is rooted in its merchant banking heritage, which gives it a structural advantage in understanding complex business relationships and structuring credit beyond traditional collateral frameworks.

On how the fresh capital will be deployed, CEO Anele outlined a three-pronged execution plan covering lending expansion, technology investment and physical footprint growth.

“We are growing our loan book with deliberate focus on SME and commercial credit, structured around cash flow intelligence rather than collateral alone,” he disclosed, deepening “At the same time, our Phygital infrastructure requires continuous investment. Our mobile platform, core banking systems, and data analytics capability are all being upgraded.”

He added that expansion will also be visible in physical presence, with nine additional branches planned within the year. However, he was quick to stress that branch expansion is not being pursued in isolation.

“Every branch opening is supported by digital infrastructure; every technology investment improves the quality of our lending decisions,” he said.

The CEO dismissed the notion that recapitalisation automatically translates into a higher risk appetite, insisting instead that it strengthens capacity without diluting discipline.

“Recapitalisation expands our risk capacity, it does not change our risk philosophy,” he said, explaining “We are a relationship bank. That means our risk appetite is guided by the quality of our understanding of the borrower, not just the size of the ticket.”

He further explained that Nova’s lending strategy will remain balanced across both corporate and retail segments, but driven by a deeper understanding of client behaviour and sector dynamics.

In identifying priority sectors, the Nova CEO pointed to manufacturing, agro-processing, trade and commerce, logistics, and professional and technology services as the bank’s immediate focus areas.

“These are sectors where Nigeria’s economic potential is highest but financing remains structurally inadequate,” he said.

Anele also addressed concerns about risk management in a volatile macroeconomic environment, stating that the bank’s governance architecture is designed to withstand external shocks such as currency volatility, inflationary pressure and policy tightening.

“Our board-level risk management committee sets the risk appetite framework within which management operates,” he further revealed, explaining “In a volatile macro environment, the answer is not to stop lending. It is to lend more intelligently.”

According to him, Nova’s survival strategy in uncertain conditions is built on diversification, conservative foreign exchange exposure, stress testing and deep relationship banking.

“In a volatile macro environment, the banks that survive are the ones whose clients pick up the phone and talk to them honestly about emerging difficulties,” he added.

On differentiation in a crowded banking sector, Anele returned again to the bank’s central philosophy: advisory depth, community trust and mass customisation.

“Six years of merchant banking has built an institutional capability for understanding businesses deeply that most commercial banks simply do not have,” he said, asserting “We are entering markets with pre-built relationships and trust, not starting from zero with a branch and a marketing campaign.”

He also emphasised that digital transformation is not an auxiliary function but the core delivery system of Nova’s entire strategy.

“It is not a strand of the strategy — it is the delivery infrastructure of the entire strategy,” he said, describing the bank’s “Phygital” model as a fusion of physical relationship banking and digital scalability.

Looking ahead, Anele said Nova’s ambition extends beyond Nigeria, with a long-term vision to become what he described as “Africa’s preferred financial solutions provider.”

But even as ambitions expand, he returned repeatedly to a central theme: discipline over size, and quality over scale.

“We will not chase size at the expense of quality,” he reiterated,.emphasising “The most dangerous loan is not the large one — it is the one you do not understand.”