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VFD Group has announced a strategic capital injection of N5 billion into its digital-first financial institution, VFD Microfinance Bank (V Bank). This investment, approved by the company’s board on February 18, 2025, underscores VFD Group’s commitment to financial inclusion, innovation, and digital banking transformation in Nigeria.
The investment was disclosed in a regulatory filing on the Nigerian Exchange (NGX) on February 19, 2025, signed by Gbeminiyi Shoda, Company Secretary. The move aligns with Section 289(8) of the Companies and Allied Matters Act 2020, reinforcing VFD Group’s vision of strengthening V Bank’s market presence and technological capabilities.
Driving Digital Banking Growth
VFD Group’s Group Managing Director and CEO, Nonso Okpala, emphasized the significance of the investment, stating:
“This capital injection is a crucial step in our mission to redefine banking in Nigeria. V Bank is more than a financial institution; it is a platform for economic empowerment, offering seamless, technology-driven banking solutions for individuals and businesses.”Similarly, Rotimi Awofisibe, Managing Director of V Bank, highlighted the benefits of the funding:
“This investment will enhance our technological infrastructure, improve service delivery, and expand our reach. With the backing of VFD Group, we are better positioned to drive financial accessibility and inclusion across Nigeria.”
As a fully digital bank, V Bank offers a mobile-first banking experience, providing services such as savings, loans, payments, and investment opportunities, tailored to modern financial needs.
VFD Group’s Strong Financial Performance in 2024
The investment follows VFD Group’s impressive financial turnaround in 2024, reporting a pre-tax profit of N12.4 billion, a significant recovery from a N1 billion loss in 2023.
Key highlights from VFD Group’s 2024 earnings report, released on February 10, 2025, include:
1. Net revenue surged to N32.2 billion, a 164.15% increase from N12.1 billion in 2023.
2. Investment income, which made up 85.54% of gross earnings, rose to N71.1 billion, a 107.62% growth from N34.28 billion the previous year.
3. Other income grew by 31.60% to N9.35 billion, supported by logistics, hospitality, fair value gains, and foreign exchange earnings.
4. Total assets expanded to N328.6 billion, a 49.90% increase from N219.2 billion in 2023.
Nonso Okpala attributed this financial success to strategic investments, divestments, and a robust treasury operation framework, positioning VFD Group for sustained growth.
Shaping Nigeria’s Digital Banking Future
VFD Group’s investment in V Bank aligns with its long-term vision of fostering a technology-driven and inclusive financial ecosystem in Nigeria. With this capital infusion, V Bank is set to accelerate digital banking adoption, enhance customer experience, and introduce more innovative financial solutions.
As Nigeria’s fintech landscape continues to evolve, V Bank’s expansion signals a growing shift toward mobile-first banking, catering to an increasingly tech-savvy population.
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