United Bank for Africa Plc has met the Central Bank of Nigeria’s N500 billion minimum capital requirement, following the successful completion of the second tranche of its rights issue, thereby strengthening its balance sheet well ahead of the March 2026 recapitalisation deadline.
As at the bank’s 2025 half-year audited results, UBA’s share capital and share premium stood at about N350 billion. This rose sharply after the Securities and Exchange Commission approved the allotment of N157 billion to shareholders from the second tranche of the rights issue, pushing the bank’s total share capital above the regulatory threshold for commercial banks with international authorisation.The milestone affirms UBA’s compliance with applicable capital requirements and reflects what the bank described as prudent capital planning in response to the CBN’s recapitalisation programme.
Speaking earlier at UBA’s 65th Annual General Meeting in Abuja, the chairman, Tony Elumelu, had assured shareholders that the bank would meet the N500 billion requirement before the third quarter of 2025.“Our current capital in the year 2024 was N116 billion. However, following the rights issue that we launched in November last year, which was oversubscribed, N251 billion has been verified and approved by the Central Bank of Nigeria,” Elumelu said.The rights issue, which closed in December, involved the offer of 6.84 billion ordinary shares of 50 kobo each to existing shareholders at N35 per share.
Elumelu disclosed that although the offer was oversubscribed by N11.6 billion, the bank took up only N240 billion, with the balance returned to shareholders.He explained that the decision to raise fresh capital through the rights issue rather than a public offer was deliberate and aimed at protecting shareholder value. “If we were selfish, we would do a public offering. But we said, let’s allow existing shareholders. So, we pay dividends, and some of you use it to invest. The investment you’re making means you are sharing in the N3.4 trillion wealth that your investment has helped create,” he said.Elumelu also highlighted UBA’s long-standing strategy of reinvesting retained earnings as a key driver of its robust capital position.
“Our paid-up share capital is N116 billion, and our shareholders’ fund is N3.4 trillion. That is over $3.2 billion. Why should we bring in new investors to take what you have already built?” he said. According to the chairman, proceeds from the capital raise will be deployed to deepen the bank’s digital infrastructure and support expansion across Nigeria, Africa and other global markets, positioning UBA for the next phase of growth under the new regulatory capital regime.
