United Bank for Africa Plc (UBA) says it will meet the Central Bank of Nigeria’s N500bn recapitalisation requirement well before the March 2026 deadline set for banks with international licenses. Chairman of the bank, Tony Elumelu, gave this assurance on Friday while addressing shareholders at UBA’s 65th Annual General Meeting held at the Transcorp Hilton in Abuja.
According to Elumelu, the bank has already made significant headway toward achieving the target, including the successful execution of a rights issue in 2024.
“Our capital stood at N116bn in 2024. However, with the rights issue launched in November which was oversubscribed we’ve secured CBN approval for an additional N251bn. That brings our new capital base to N355.2bn,” he said.
The rights issue, which closed in December 2024, offered 6.84 billion ordinary shares at N35 each to existing shareholders. While the offer was oversubscribed by N11.6bn, UBA accepted only N240bn, returning the surplus funds. The remaining N144.8bn to meet the CBN threshold will be raised before the third quarter of 2025, Elumelu confirmed.
He noted that the bank deliberately chose a rights issue over a public offering to preserve shareholder value and avoid diluting ownership.
“If we were self-interested, we’d go for a public offer. But we chose to empower our existing shareholders. When you reinvest your dividends, you’re participating in the N3.4tn wealth that your investment helped create,” Elumelu told shareholders.
He further explained that UBA’s long-standing policy of retaining a portion of its earnings had strengthened its capital structure and allowed for sustainable growth.
“Our paid-up share capital is N116bn, but our shareholders’ fund is N3.4tn — over $3.2bn. Why invite new investors to benefit from what you’ve already built?” he asked.
Proceeds from the recapitalisation drive, he said, would be channelled into expanding digital infrastructure and scaling UBA’s presence across Nigeria, Africa, and globally.
Highlighting the bank’s performance in 2024, Elumelu reported a robust financial year with gross revenue hitting N3.2tn and profit after tax standing at N767bn. Customer deposits surged by 42% to N24.6tn, while the loan book rose by 35% to N7.5tn. Total assets grew to N30.3tn, and shareholders’ funds reached N3.4tn.
“These results reflect a disciplined execution of our long-term strategy and the relentless effort of our teams across markets,” he said.
UBA currently serves over 45 million customers across 24 countries spanning four continents a reach that reinforces its positioning as Africa’s global bank.
The bank also showcased its sustainability and corporate social responsibility achievements. In 2024, it planted 4,550 tree seedlings, offsetting an estimated 212,000 kg of carbon emissions. Additionally, it distributed over 13,000 books through its Read Africa literacy initiative.
UBA was named Bank of the Year in five African countries by The Banker Magazine, and also clinched Best Regional Bank West Africa at the African Banker Awards.
Group Managing Director and CEO, Oliver Alawuba, assured shareholders of continued investment in digital transformation and customer experience.
“The customer remains our central focus. We’re investing in artificial intelligence and digital channels to ensure seamless, secure, and user-friendly experiences across all touchpoints,” Alawuba said.
He added that part of the recapitalisation proceeds would support fraud prevention systems, expansion into France and Saudi Arabia, and the creation of customer fulfilment centres.
“What some call complaints, we treat as valuable feedback that guides our improvement efforts,” he said.
Responding to shareholder concerns about dividends, Alawuba noted significant progress had been made and hinted at better returns in the near future.
“We’ve moved from ‘kobo-kobo’ dividends to a total payout of N5.00 per share in 2024, including the N2.00 interim dividend. We’re working toward surpassing the N7 target shareholders have set for us,” he said.
Shareholders unanimously approved a final dividend of N3.00 per share and re-elected Tony Elumelu as Chairman of the Board, applauding the management’s performance, growth strategy, and commitment to transparency.
