Zenith Bank Plc, led by Nigerian banking mogul Jim Ovia, has received approval from Nigeria’s apex monetary authority to undergo a structural transformation into a non-operating financial holding company.
The bank made the announcement in a trading update released today on the Nigerian Exchange, stating that it has received “approval in principle” from the Central Bank of Nigeria (CBN) for the proposed restructuring.
Securing approval from the CBN is a major boost for Zenith Bank’s strategic expansion plans and will enable the bank to join the league of other financial services providers, such as Access Holdings, Guaranty Trust Holdings Co., Plc., First Bank of Nigeria Holdings Plc., and Stanbic IBTC Holdings, that currently operate under a holding company structure.
As part of the approval, Ovia has been appointed as the chairman of Zenith Holdco Plc and will continue to serve as the chairman of Zenith Bank until the transformation is complete, at which point he will continue to lead the transformed entity.
Zenith Bank’s recent approval from the CBN marks a significant milestone in its strategic expansion plans, as it positions itself to join other major financial services providers such as Access Holdings, Guaranty Trust Holdings Co., Plc., First Bank of Nigeria Holdings Plc., and Stanbic IBTC Holdings, which have already adopted a holding company structure.
Many market participants view Zenith Bank’s recent move as a response to a directive issued by the CBN that stipulates new tenure guidelines for commercial banks’ executive directors, deputy managing directors, and managing directors.
Following the CBN’s disclosure of the new guidelines, several top bank executives, including Zenith Bank’s former Deputy Managing Director Adaora Umeoji, have been compelled to resign, with Umeoji retiring earlier this week.
Ovia, the founder and chairman of Zenith Bank, has been a key figure in both the evolution and digital transformation of the Nigerian banking industry. He owns an impressive 16.2-percent stake in the leading financial services group, which amounts to 5,072,104,311 ordinary shares.
With a market capitalization of N835 billion ($1.81 billion), Zenith Bank is not only Nigeria’s most profitable bank but also the largest listed financial services group on the Nigerian Exchange.
Additionally, it ranks as the seventh-most valuable company on the local bourse.
