United Bank for Africa Plc (UBA) is on track to meet the Central Bank of Nigeria’s (CBN) new N500 billion minimum capital requirement for international banks by the third quarter of 2025. This assurance came from the bank’s Chairman, Tony Elumelu, during UBA’s 63rd Annual General Meeting held at the Transcorp Hilton in Abuja.
The announcement follows the CBN’s sweeping directive issued in March 2024, which raised the capital base for commercial banks with international licenses from ₦50 billion to ₦500 billion, a tenfold increase aimed at strengthening Nigeria’s financial system and improving its resilience to shocks. Banks operating nationally must also increase their capital to ₦200 billion, while regional banks face a new minimum of ₦50 billion.
Speaking to shareholders, Elumelu emphasized that UBA is not only committed to meeting the new capital threshold but also plans to do so well ahead of the March 2026 deadline. According to him, the bank kickstarted its capital raising journey with a rights issue launched in November 2024, offering 6.84 billion ordinary shares at ₦35 per share. The offer, which closed in December 2024, was oversubscribed, demonstrating strong investor confidence in UBA’s strategy and growth prospects.
UBA’s proactive move aligns with its broader ambition to solidify its position as a leading pan-African bank. With operations in 20 African countries and offices in major financial centers such as London, Paris, and New York, UBA has consistently ranked among Nigeria’s strongest banks. According to its 2024 full-year financials, UBA posted a profit before tax (PBT) of ₦502.1 billion, a 120% increase compared to ₦228.2 billion in 2023, reflecting robust growth across its African subsidiaries and strong asset quality.
Elumelu also highlighted that UBA’s current Capital Adequacy Ratio (CAR) stands at 24%, well above the regulatory minimum of 15% for international banks, reinforcing the bank’s financial strength even before the capital raise. He reiterated that the increased capital would position UBA to fund larger infrastructure projects, deepen support for SMEs, and expand its digital banking footprint across the continent.
UBA’s swift response to the CBN directive sets a competitive precedent in Nigeria’s banking sector, where analysts predict a wave of mergers, acquisitions, and strategic fundraising activities as banks scramble to meet the new thresholds.
