United Bank for Africa (UBA) Plc is on track to meet the Central Bank of Nigeria’s (CBN) N500 billion minimum capital requirement for commercial banks with international authorization by the third quarter of 2025, well ahead of the March 2026 deadline.
Tony Elumelu, Chairman of UBA, announced this during the bank’s 63rd Annual General Meeting (AGM) held at the Transcorp Hilton in Abuja on April 25, 2025. The assurance comes as part of UBA’s strategic efforts to strengthen its financial base and support its expansion plans across Africa and beyond.
In March 2024, the CBN introduced a financial reform mandating banks with international authorization to increase their capital base to N500 billion to enhance the stability of Nigeria’s financial sector and support economic growth. Elumelu explained that UBA initiated its capital-raising efforts with a rights issue in November 2024, which closed in December 2024.
The issue offered 6.84 billion ordinary shares of 50 kobo each at N35 per share, raising N251 billion, which was oversubscribed by N11.6 billion (4.8%). The CBN has verified and approved the funds, bringing UBA’s current capital to N355.2 billion. To meet the N500 billion threshold, UBA plans to raise an additional N144.8 billion in Q3 2025 through further capital-raising activities, including private placements and potential public offerings.
Elumelu emphasized that the proceeds from the rights issue would be invested in digital technologies and business expansion to sustain UBA’s seven-and-a-half decades of strong performance. The bank reported a gross revenue of N3.2 trillion and a profit after tax of N767 billion for the 2024 financial year, with total deposits growing by 42% to N24.6 trillion and total assets reaching N30.3 trillion.
UBA’s Group Managing Director, Oliver Alawuba, highlighted the bank’s commitment to paying strong dividends, with shareholders approving a final dividend of N3 per share, bringing the total dividend for 2024 to N5 per share, amounting to N102 billion. With operations in 24 countries and a customer base exceeding 45 million, UBA’s robust financial performance and proactive approach to recapitalization position it as a leader in Nigeria’s banking sector.