VFD Group Injects N5 Billion into V Bank to Strengthen Digital Banking Operations

VFD Group has announced a significant capital injection of N5 billion into its digital-first financial institution, VFD Microfinance Bank (V Bank). This move, approved by the company’s board on February 18, 2025, underscores VFD Group’s commitment to enhancing financial inclusion and innovation in Nigeria’s banking sector.

The investment was disclosed in a regulatory filing on the Nigerian Exchange (NGX) on February 19, 2025, signed by Gbeminiyi Shoda, the company secretary. The decision aligns with Section 289(8) of the Companies and Allied Matters Act 2020, reinforcing VFD Group’s strategic focus on strengthening V Bank’s market position.

Strategic Vision for Growth

Speaking on the development, Nonso Okpala, Group Managing Director and CEO of VFD Group, emphasized the broader impact of the investment:

“This capital injection marks a pivotal moment in our journey to redefine banking in Nigeria. V Bank is more than just a financial institution; it is a tool for economic empowerment, designed to provide seamless and innovative banking solutions that cater to the needs of individuals and businesses alike.”

Similarly, Rotimi Awofisibe, Managing Director of V Bank, highlighted the importance of the fresh capital infusion:

“This investment will enhance our technological infrastructure, improve service delivery, and expand our reach. With the support of VFD Group, we are better positioned to offer cutting-edge banking solutions that drive financial accessibility and inclusion across Nigeria.”

As a digital-first bank, V Bank provides an entirely mobile-driven banking experience, offering services such as savings, loans, and payments tailored to modern financial needs.

VFD Group’s Financial Performance in 2024

The investment comes on the heels of an impressive financial performance by VFD Group in the 2024 fiscal year. The company reported a pre-tax profit of N12.4 billion, a remarkable turnaround from the N1 billion loss recorded in 2023.

Key financial highlights from VFD Group’s 2024 earnings report, released on February 10, 2025, include:

Net revenue surged to N32.2 billion, reflecting a 164.15% increase from N12.1 billion in 2023.
Investment income, which accounted for 85.54% of gross earnings, jumped to N71.1 billion, marking a 107.62% growth from N34.28 billion the previous year.
Other income grew by 31.60% to N9.35 billion, supported by logistics, hospitality, fair value gains, and foreign exchange earnings.
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 investment decisions, divestments, and a robust treasury operation framework.

Strengthening Nigeria’s Digital Banking Landscape

VFD Group’s investment in V Bank reflects its broader vision of fostering a more inclusive and technology-driven financial ecosystem in Nigeria. With the new capital, V Bank is poised to drive digital banking adoption further, enhance customer experience, and introduce more innovative financial products.

As Nigeria’s fintech sector continues to evolve, V Bank’s expansion signals a growing shift towards mobile-first banking solutions, meeting the needs of an increasingly digital-savvy population.