Leading Nigerian lender, United Bank for Africa (UBA) Plc, has announced plans to raise ₦144.8 billion ($90.2 million) in additional capital this year to meet the Central Bank of Nigeria’s (CBN) newly mandated minimum capital threshold and fund its ambitious international expansion.
In an emailed statement, Oliver Alawuba, Chief Executive Officer of UBA, revealed that this new capital, along with the ₦240 billion already secured through a rights issue, would allow the bank to satisfy the ₦500 billion minimum capital requirement set by the CBN.
“The capital will be duly invested in additional technologies and business growth in Nigeria, across Africa, and the globe,” Alawuba confirmed. He further disclosed that UBA is looking to expand its footprint by establishing operations in France and Saudi Arabia, building on its current presence in 24 countries.
The CBN raised the capital requirement for banks in 2023, giving them a two-year timeline to comply. This regulatory action is aimed at strengthening the financial sector against persistent economic challenges, including high inflation, a weak economy, and the naira’s sharp devaluation following currency reforms.
UBA’s move to shore up its capital base underscores its commitment to not just complying with regulatory demands but also positioning itself as a stronger, more resilient global player.
Access Holdings Plc, Nigeria’s largest lender by assets, also announced this week that it had successfully met the capital target after raising ₦351 billion through a rights issue.
UBA’s Vision for the Future
UBA’s expansion strategy signals a bold push into new international markets. By targeting France and Saudi Arabia, the bank aims to tap into new banking opportunities and further solidify its reputation as one of Africa’s foremost financial institutions.
This development places UBA among the frontrunners in the race to transform Nigeria’s banking sector into a more competitive, globally connected industry.
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