UBA Group Raises Capital to CFAF 195 Billion in Line with Central Bank of Nigeria Requirements

United Bank for Africa (UBA) has successfully completed a major new phase of its recapitalization process. The Nigerian banking group raised ₦178.3 billion (approximately CFAF 69.5 billion) through a rights issue that closed on 19 September 2025.

This operation lifted UBA’s capital base above the regulatory threshold of ₦500 billion, the equivalent of CFAF 195 billion—required for top-tier international banks. It follows an earlier capital raise of ₦239 billion (around CFAF 93.2 billion) completed in July 2025, which had already increased UBA’s shareholders’ funds to ₦355.2 billion (about CFAF 138.5 billion).

According to data released by the bank, the rights issue recorded 6,404 valid acceptances, covering 3.56 billion shares for a total value of ₦178.3 billion. The vast majority of subscriptions came from standard rights, while traded rights were marginal, with only five transactions on the Nigerian Exchange representing 10,462 shares.

Invalid applications amounted to 568.7 million shares, valued at ₦28.43 billion (approximately CFAF 11.1 billion), bringing total demand—valid and invalid combined—to more than 4.13 billion shares.

The offer price was set at ₦50 per share (around CFAF 19.5) for over 3.15 billion ordinary shares, reserved for shareholders registered as of 16 July 2025.

With this latest capital raise, UBA has now exceeded the minimum recapitalization requirement set by the Central Bank of Nigeria, which mandates that international banks maintain a capital base of at least ₦500 billion (CFAF 195 billion) by March 2026. This milestone positions UBA among the first Nigerian banks to comply with the new rules, amid tighter prudential regulation and accelerated consolidation in the banking sector.

The strengthened capital base enhances UBA’s ability to finance large-scale projects, support African economies where it operates, and further consolidate its international expansion. It also sends a positive signal to investors and financial markets at a time when the resilience of Nigerian banks is under close scrutiny.

As of the shareholder register dated 30 June 2025, UBA’s ownership structure remains relatively dispersed. No shareholder holds more than 5% of the bank’s capital, with the exception of Heirs Holdings Limited, which owns 5.15%, and UBA Nominees, which holds 6.27%. Heirs Holdings is owned by Nigerian billionaire Tony Elumelu, who also serves as Chairman of UBA’s Board of Directors.

From a financial performance standpoint, results remain solid. Over the first nine months of 2025, UBA reported an unaudited profit of ₦537.5 billion (approximately CFAF 209.6 billion), representing a 2.33% increase compared with the same period in 2024. Gross earnings rose by nearly 3%, reaching ₦2.5 trillion (around CFAF 975 billion), driven mainly by growth in interest income.