Nova Bank expands operations, targets SMEs as growth driver

NOVA Commercial Bank has announced plans to open nine additional branches before the end of 2026 as part of a deliberate expansion strategy centred on deepening its support for small and medium-sized enterprises. The bank, which recently completed its recapitalisation programme ahead of the CBN’s March 31, 2026 deadline, currently operates in Lagos, Abuja, Owerri, and Port Harcourt.

Building around SMEs, not large corporates

Managing Director and CEO Jude Anele, who was recently appointed following CBN approval, outlined the bank’s commercial strategy around three pillars: mass customisation for retail customers, deep relationship management for corporate and SME clients, and a phygital model that integrates digital capabilities with a physical branch presence.

Anele was direct about the bank’s positioning: Nigeria’s growth narrative has often centred on large enterprises whose value may not be fully retained locally. SMEs, by contrast, drive real economic empowerment. Supporting this segment, he said, is not merely strategic for NOVA.

The expansion strategy is described as relationship-led, with each new branch designed to deepen existing engagements rather than pursue opportunistic growth.

Efficiency as competitive advantage

NOVA’s approach challenges the assumption that size determines success in banking. The bank’s leadership believes efficiency, not scale, will define the next phase of competition in Nigeria’s financial sector, particularly as more players enter the market following the CBN’s recapitalisation exercise.

The phygital model is central to this thinking. Rather than choosing between digital convenience and physical presence, the bank is building both simultaneously — combining the agility of fintech-style digital banking with the trust that comes from face-to-face engagement. Anele described this as the point where relationship banking meets efficiency.

What this means for SMEs

For growth-stage businesses that have struggled with the strict collateral requirements and impersonal processes of larger banks, NOVA’s stated commitment to tailored financial solutions and sustained relationship support could translate into more accessible credit and advisory services. The bank’s expansion into secondary cities and commercial hubs also signals a deliberate effort to reach businesses beyond Nigeria’s major urban centres.

As Nigeria’s banking sector emerges from recapitalisation with stronger balance sheets, how institutions deploy that capital will matter greatly — and banks that build genuine SME competencies now are likely to capture a disproportionate share of a segment that represents over 90 per cent of all Nigerian businesses.