United Financial institution for Africa Plc has met the Central Financial institution of Nigeria’s N500 billion minimal capital requirement, following the profitable completion of the second tranche of its rights challenge, thereby strengthening its steadiness sheet nicely forward of the March 2026 recapitalisation deadline.
As on the financial institution’s 2025 half-year audited outcomes, UBA’s share capital and share premium stood at about N350 billion. This rose sharply after the Securities and Alternate Fee authorised the allotment of N157 billion to shareholders from the second tranche of the rights challenge, pushing the financial institution’s complete share capital above the regulatory threshold for business banks with worldwide authorisation.
The milestone affirms UBA’s compliance with relevant capital necessities and displays what the financial institution described as prudent capital planning in response to the CBN’s recapitalisation programme.
Talking earlier at UBA’s sixty fifth Annual Basic Assembly in Abuja, the chairman, Tony Elumelu, had assured shareholders that the financial institution would meet the N500 billion requirement earlier than the third quarter of 2025.
“Our present capital within the 12 months 2024 was N116 billion. Nevertheless, following the rights challenge that we launched in November final 12 months, which was oversubscribed, N251 billion has been verified and authorised by the Central Financial institution of Nigeria,” Elumelu mentioned.
The rights challenge, which closed in December, concerned the supply of 6.84 billion unusual shares of fifty kobo every to present shareholders at N35 per share. Elumelu disclosed that though the supply was oversubscribed by N11.6 billion, the financial institution took up solely N240 billion, with the steadiness returned to shareholders.
This introduced UBA’s capital base on the time to N355.2 billion, with plans already in movement to boost the excellent quantity earlier than the top of the 12 months. With the SEC-approved N157 billion from the second tranche now added, the financial institution has successfully surpassed the CBN benchmark.
He defined that the choice to boost recent capital by means of the rights challenge relatively than a public supply was deliberate and aimed toward defending shareholder worth. “If we have been egocentric, we’d do a public providing. However we mentioned, let’s permit present shareholders. So, we pay dividends, and a few of you employ it to take a position. The funding you’re making means you might be sharing within the N3.4 trillion wealth that your funding has helped create,” he mentioned.
Elumelu additionally highlighted UBA’s long-standing technique of reinvesting retained earnings as a key driver of its strong capital place.
“Our paid-up share capital is N116 billion, and our shareholders’ fund is N3.4 trillion. That’s over $3.2 billion. Why ought to we usher in new buyers to take what you will have already constructed?” he mentioned.
In accordance with the chairman, proceeds from the capital increase shall be deployed to deepen the financial institution’s digital infrastructure and help enlargement throughout Nigeria, Africa and different international markets, positioning UBA for the following section of development underneath the brand new regulatory capital regime.
