Zenith Bank has received approval from the Central Bank of Nigeria to operate as a financial holding company, allowing it to change its organisational structure and establish a non-operating financial holding company, Zenith Holdco Plc.
With this move, Zenith Bank joins a few other Nigerian banks, including First City Monument Bank and Access Bank that have already adopted the model.
In a statement signed by the Company Secretary, Michael Otu, on Friday, March 3, 2023, and submitted to the Nigerian Exchange, the company revealed plans to change its organisational structure.
READ ALSO: Zenith Bank names iconic UNILAG alumni building after late Prof. Ibidapo-Obe
“The CBN has granted approval-in-principle for Zenith Bank to operate a non-operating financial holding company structure. Furthermore, the CBN approved Mr. Jim Ovia as the Chairman of Zenith Holdco Plc (in-formation and for Mr. Jim Ovia to also continue as the Chairman of Zenith Bank until the commencement of Zenith Holdco.”
This move will increase the number of banks operating as financial holding companies in the country.
Holding companies allow banks to diversify their operations and offer a broader range of financial products and services. They can also help banks manage risks and improve efficiency by consolidating operations and resources across different business units.
As the financial sector continues to evolve, more institutions will likely adopt this business model and transform their operations to meet their customers’ needs better.
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