Abayomi Susan
The United Bank for Africa has successfully crossed the N500 billion capital threshold, a pivotal achievement that solidifies its financial foundation and accelerates its strategic ambitions across the African continent. This milestone was reached through the successful completion of a N157.83 billion rights issue, which saw strong demand from investors with a subscription rate of 113 percent.
This capital increase is a direct response to the Central Bank of Nigeria’s revised minimum capital requirements, which mandate that commercial banks with international authorisation must maintain a capital base of N500 billion. UBA has comfortably met this requirement well ahead of the March 2026 deadline, having combined its existing share capital and premium with the new funds raised.
The decision to raise capital through a rights issue, offering new shares to existing shareholders, was a deliberate strategy to protect shareholder value and allow current investors to participate directly in the bank’s growth.
The new capital is a powerful enabler for UBA’s well-established pan-African expansion drive. The bank’s strategy is deeply rooted in diversification across the continent. It operates in 20 African countries and derives a significant portion of its revenue—over half—from its operations outside Nigeria.
Group Managing Director Oliver Alawuba has emphasized that the contribution from African subsidiaries to profit before tax has risen to 53 percent, a trend the bank expects to continue. The proceeds from the capital raise are earmarked to deepen the bank’s digital infrastructure and support further expansion across Nigeria, Africa, and global markets.
UBA’s expansion is both deep and broad. Internally, it focuses on strengthening its operations in its existing 20 African markets.
Externally, it is actively pursuing entry into new high-potential markets, having recently announced plans to establish operations in Saudi Arabia. Furthermore, the bank is upgrading its license in France to enhance its capacity in Europe, complementing its long-standing presence in the United Kingdom and the United States. This global network supports its mission to connect Africa to the world and facilitate trade and investment flows.
This strategic push is championed at the highest levels, as demonstrated by Group Chairman Tony Elumelu’s high-impact working tours across East, Central, and Southern Africa to foster partnerships in entrepreneurship and infrastructure financing.
The bank’s robust financial performance provides a strong backdrop for this expansion, with notable growth in gross earnings, total assets, and customer deposits.
By achieving this capital milestone, UBA has not only secured its regulatory standing but has also equipped itself with the financial muscle to pursue a future as a truly global institution anchored in Africa. The bank is positioned to unlock new opportunities, support growing intra-Africa trade, and deliver services to its over 45 million customers worldwide.
