VFD Group Injects ₦5bn Into V Bank, Signals Growth Intent

VFD Group Plc has approved a ₦5 billion capital injection into its digital-first subsidiary, VFD Microfinance Bank (V Bank), reinforcing its commitment to strengthening the financial institution’s operations.

The approval, dated February 18, 2025, was disclosed in a statement released on the Nigerian Exchange (NGX) on February 19, 2025, and signed by Gbeminiyi Shoda, the company secretary. The statement emphasised that the decision aligns with Section 289(8) of the Companies and Allied Matters Act 2020, underscoring VFD Group’s long-term vision for V Bank.

The statement described the investment as a strategic move to solidify V Bank’s position as a leading player in Nigeria’s financial services sector. Speaking on the development, Mr. Nonso Okpala, Managing Director\Chief Executive Officer (CEO) of VFD Group, said the capital injection represents a transformative step toward providing innovative banking solutions that cater to the diverse financial needs of Nigerians. He expressed confidence in V Bank’s potential, describing it as a catalyst for economic growth designed to create a more inclusive financial environment that fosters opportunity and trust.

Mr. Rotimi Awofisibe, Managing Director of V Bank, also highlighted the significance of the investment, stating that it will enhance the bank’s technological capabilities and improve the customer experience. He noted that with the backing of VFD Group, V Bank is well-positioned to expand its reach and deliver efficient, accessible, and innovative banking solutions to a larger segment of the Nigerian population. As a fully digital bank, V Bank focuses on providing seamless financial services for individuals and businesses, leveraging technology to simplify the banking experience.

VFD Group’s financial performance in 2024 reflected a significant turnaround, reporting a pre-tax profit of ₦12.4 billion, a sharp recovery from a ₦1 billion loss recorded in 2023. The group’s net revenue for the year reached ₦32.2 billion, representing a 164.15 percent increase from ₦12.1 billion in the previous year. Investment income, which accounted for 85.54 percent of gross earnings, surged by 107.62 percent to ₦71.1 billion, driven largely by divestments, interest from treasury operations, loans, and dividends. Other income also grew by 31.60 percent to ₦9.35 billion, reflecting gains from logistics, hospitality, fair value adjustments, and foreign exchange transactions. The company’s total assets increased to ₦328.6 billion, marking a 49.90 percent rise from ₦219.2 billion in 2023.

Mr. Okpala attributed the group’s financial growth to strategic investments and divestments made throughout the year. He emphasised that these strategic moves have played a crucial role in boosting earnings and overall profitability. With the capital injection into V Bank, VFD Group is reinforcing its position in Nigeria’s financial sector and laying the groundwork for continued innovation and expansion in digital banking.