Jim Ovia, founder of Zenith Bank Plc, has shared insights into the remarkable journey of the financial institution, which began operations in 1990 with a modest startup capital of ₦20 million and grew into one of Africa’s leading banks with shareholders’ funds of approximately $4 billion within two decades.
Ovia made the disclosure in an interview that was shared on the social media platform X (formerly Twitter) on Thursday by user AjMachalaa, where he reflected on the bank’s humble beginnings, the challenges encountered along the way, and the lessons young Nigerian entrepreneurs can draw from the experience.
“I started Zenith Bank with N20m in 1990. That is about $5m at the same rate of N4 to the dollar,” Ovia said, highlighting the stark difference in exchange rate realities between then and now. He noted that the economic environment of the early 1990s, though challenging in its own right, presented opportunities that rewarded persistence and strategic vision.
According to the banker, the bank’s shareholders’ funds had climbed to around $4 billion roughly two decades after its establishment, a trajectory he described as a remarkable return on investment by global standards. “From $4m to $4bn. You can do the math. It will give you some thousands percentage return,” Ovia stated, emphasizing the scale of growth achieved within a relatively short period.
He pointed out that such returns are uncommon even in advanced economies, underscoring the potential that exists within Nigeria’s business environment for those willing to endure and innovate. “These kind of numbers, these kind of returns, you don’t get it even in God’s own country, America. You don’t get it in Europe. You don’t get it in Russia. You can get them in Nigeria,” he said.
Speaking on the factors that contributed to Zenith Bank’s success, Ovia offered advice to young Nigerians aspiring to build businesses, urging them to remain focused and determined in the face of obstacles. “They should remain focused. They should remain determined,” he said, stressing that setbacks are an inherent part of entrepreneurship and should not be seen as reasons to abandon one’s goals.
The banker acknowledged that adversity is a constant in business, regardless of geography or level of development. “You will always experience adversity, challenges in any business initiatives, whether it’s in Europe or it’s in America,” Ovia noted, adding that many entrepreneurs give up precisely at the point where persistence could have made the difference.
He emphasized that the challenges faced in Nigeria, while significant, are not unique to the country and should not serve as excuses for inaction or retreat. Instead, he argued, they should be viewed as tests of resolve and opportunities to develop innovative solutions that can set a business apart from competitors.
Ovia also shed light on one of the less visible but critical aspects of doing business in Nigeria: the need for private enterprises to provide their own basic infrastructure in order to function effectively. He disclosed that Zenith Bank had, over the years, been compelled to construct access roads to its branches, install independent power supply systems through generators and power plants, and sink boreholes to ensure reliable water supply.
“When we do all this, what I personally call it is BYOI, bring your own infrastructure or build your own infrastructure,” Ovia explained, coining an acronym that captures the reality faced by many businesses operating in environments where public infrastructure is either inadequate or non-existent.
This self-reliance, according to the banker, added significantly to the cost of doing business but was necessary to ensure consistent service delivery to customers. The ability to anticipate and address infrastructural gaps, he suggested, has been a key factor in the bank’s ability to maintain operations and grow its customer base across the country.
Zenith Bank’s story is part of a broader narrative of banking sector transformation in Nigeria over the past three decades. The bank was established in May 1990 and commenced operations as a commercial bank, entering a sector that was then dominated by a mix of older indigenous banks and foreign institutions. The 1990s were a turbulent period for Nigerian banking, marked by regulatory reforms, economic instability, and a wave of bank failures that tested the resilience of even the most established players.
Zenith Bank’s ability to not only survive but thrive during this period has been attributed to a combination of strategic management, customer-focused service delivery, aggressive expansion, and early adoption of technology. By the time the Central Bank of Nigeria introduced banking sector consolidation reforms in 2004, which raised the minimum capital base for banks from ₦2 billion to ₦25 billion, Zenith Bank was well-positioned to meet the new requirements and emerge as one of the mega-banks that would define the next phase of Nigeria’s financial sector development.
The bank’s growth trajectory continued through the 2000s and 2010s, with expansion into other African markets, diversification of services, and consistent profitability that earned it recognition as one of the continent’s top-tier financial institutions. Today, Zenith Bank operates in multiple countries and serves millions of customers across retail, corporate, and investment banking segments.
Ovia’s reflections come at a time when many young Nigerians are grappling with economic uncertainty, high inflation, currency devaluation, and limited access to capital. His message, however, was clear: despite the difficulties, Nigeria remains a viable environment for wealth creation and business success for those willing to persevere.
The banker urged young entrepreneurs not to give up on Nigeria despite the country’s infrastructural and economic challenges, stressing that perseverance and innovation remain key to success. His counsel was rooted in personal experience, having navigated the same terrain and emerged with a business that has stood the test of time.
