United Bank for Africa (UBA) Plc has successfully breached the ₦500 billion minimum capital threshold mandated by the Central Bank of Nigeria (CBN) for commercial lenders with international authorisation. The financial institution confirmed the achievement following the successful completion of a rights issue that raised ₦157.84 billion, effectively securing its position in the elite tier of Nigeria’s banking sector well before the March 31, 2026, deadline.
The conclusion of the capital raising exercise represents the second phase of the bank’s equity shelf programme. This final push added to an existing capital base that stood at approximately ₦355.2 billion following a previous injection in late 2024.
Market data indicates that the rights issue, which offered over 3.15 billion ordinary shares at ₦50 per share, was met with significant investor enthusiasm. While the bank initially received applications valued at ₦178.3 billion—representing a 113 per cent subscription rate—the final allotment was professionally managed to match the approved offer size of ₦157.84 billion.
UBA Chairman Tony Elumelu previously underscored the importance of this capital drive during the bank's annual general meeting, stating that the move was designed to protect shareholder value and avoid diluting the wealth created by existing investors. He emphasised that the bank's strategy of reinvesting retained earnings over several decades had provided a solid foundation, noting that the institution was resolute in its commitment to innovation and shared value creation.
The Central Bank of Nigeria introduced the new capital floors in March 2024 to bolster the resilience of the nation’s financial system against economic shocks. Under these guidelines, international banks must maintain ₦500 billion in paid-up capital, while national and regional banks are required to hold ₦200 billion and ₦50 billion, respectively.
According to official notices filed with the Nigerian Exchange, the proceeds from this capital raise will be strategically deployed to enhance the bank's lending portfolio over the next year. Furthermore, the bank plans to allocate significant portions of the fresh capital toward upgrading its digital technology infrastructure and expanding its business network across the four continents where it currently operates.
