VFD Group Plc, a diversified investment firm, has made a significant investment of ₦5 billion (approximately $3.35 million) into its digital banking subsidiary, VFD Microfinance Bank (commonly known as V Bank), with the aim of accelerating technological advancements and expanding its service offerings.
Since its inception in March 2020, V Bank has established a robust presence in Nigeria’s financial sector through its innovative, technology-driven banking model. The fully digital bank caters to both individuals and businesses, providing a range of services that include zero maintenance fees, competitive interest rates, and a seamless mobile banking experience available on both iOS and Android platforms. Currently, V Bank serves over 500,000 active users, highlighting its growing popularity and acceptance in the market.
Nonso Okpala, the Group Managing Director of VFD Group, conveyed his optimism regarding V Bank’s future, stating, “Our ₦5 billion investment in V Bank reflects our confidence in its potential and our unwavering commitment to seeing it flourish.” This investment aligns with VFD Group’s broader strategy of promoting financial inclusion and driving digital transformation within Nigeria’s banking sector.
The recent capital injection comes on the heels of VFD Group’s divestment of a controlling stake in Atiat Limited for ₦7 billion, indicating a strategic reallocation of resources towards enhancing its digital banking initiatives. This trend mirrors a broader movement among parent companies in Nigeria, which are increasingly investing in their fintech subsidiaries to capitalize on the burgeoning financial services market. For instance, in January 2025, Stanbic IBTC allocated ₦4 billion to recapitalize its fintech arm, Zest.
Rotimi Awofisibe, the Managing Director of V Bank, emphasized the significance of this capital infusion, stating, “This capital infusion will allow us to deepen our technological capabilities, introduce new product offerings, and enhance customer experience.” The funds will be specifically directed towards advancing V Bank’s digital infrastructure, broadening its range of services, and solidifying its position as a leading provider of financial solutions in Nigeria.
As V Bank prepares for this exciting growth phase, it plans to leverage technology, establish strategic partnerships, and focus on customer-driven innovations to effectively address the evolving needs of Nigeria’s dynamic economy. This proactive approach positions V Bank to not only enhance its service delivery but also contribute significantly to the overall development of the financial landscape in Nigeria.
