Banking
As UBA Plc Prepares For Recapitalization
By Funsho Arogundade
For the United Bank for Africa (UBA Plc), its rich history is matchless. With its origins dating back to 1949, the bank, which prides itself as Africa’s global bank, has carved its niche as a leading financial institution in sub-Saharan Africa, growing into one of the continent’s most influential banks.
UBA’s evolution from a local Nigerian bank to a pan-African and global financial institution is remarkable. Its ability to balance its African identity with a global outlook has made it one of the most trusted and dynamic banks on the continent.
Of course, much has been said about the bank’s qualitative and quantitative values. For millions of UBA customers and its present —and prospective— shareholders, there is a guarantee qualitatively non-numeric value of the bank’s solid business model, firm brand value, competitive edge, and most importantly, a list of bright minds on its roster led by quick-witted entrepreneur, Tony Onyeamechi Elumelu —as Chairman— running its operations. Even, on its numeric value, the banking behemoth has consistently maintained a strong balance sheet.
Over the years, UBA has demonstrated sound financial management, risk mitigation, and strong capital adequacy ratios, all of which have contributed to its robust financial standing.
Many would recall the heydays of the banking sector consolidation boom between 2005 and 2007. Perhaps no other bank took, more seriously, to heart, the call by the then Central Bank of Nigeria (CBN) Governor, Charles Chukwuma Soludo, that Nigeria banks should aspire to be global players like UBA did. While many other banks also hearkened to that call, given the overwhelming advantages such economies of scale would bring to a bank, the then Tony Elumelu-led management of UBA quickly set about rebranding the bank as ‘Africa’s Global Bank’. Within a few years, the bank got full commercial licenses in many countries with these offshore branches adding value to the bank’s operations and diversifying its revenue base.
Over the decades, the bank has scaled its expansion offshore and forged ahead to increase its presence on the continent and today it stands out with its unique blend of a strong African identity and a global vision that spans across 20 African countries, as well as key international financial hubs, including New York, London, Paris, and Dubai.
“Our success is a testament to the effectiveness of UBA’s global strategy and our role as the financial intermediary for Africa and the world,” Elumelu said.
UBA has indeed created opportunities for millions of Africans to open accounts, secure loans, and engage in financial activities that were previously out of reach. This wide-reaching approach to financial inclusion aligns with UBA’s broader goal of contributing to economic empowerment across the continent. By making financial services accessible, UBA is supporting small and medium-sized enterprises (SMEs), agriculture, and other sectors that are vital to African economies.
The bank’s balance sheet, which has grown steadily, is now heavily driven by its African operations. In fact, over 50% of its balance sheet is derived from its African subsidiaries —a remarkable milestone that underscores UBA’s deep integration into the economies across the continent.
The Group’s results, which were released to the Nigerian Exchange Limited (NGX) on Friday 3 May 2024, saw outstanding year-on-year increases: Gross Earnings rose by 110%, from N271.1 billion to N570.2 billion; Interest Income grew by 130%, to N440.7 billion. Operating Income increased by 115%, from N175.7 billion in 2023 to N378.59 billion.
Further consolidating the record performance delivered in the Group’s 2023 Full Year Audited Financials, UBA again saw Profit Before Tax rising significantly by 155% from N61.7 billion in Q1 2023 to N156.34 billion in Q1 2024; while Profit After Tax jumped from N53.5 billion to N142.5 billion, representing an impressive rise of 165% year-on-year.
“The vision of going into these countries is paying off and will continue to pay off. We will continue to invest in Africa and deepen our market share. Our market share in those countries is improving and if you go to some of these countries, UBA is one of the top three banks and they appreciate the contribution of the bank to their economy,” said Oliver Alawuba, the Group Managing Director of UBA Plc.
With nearly two decades since the last recapitalisation effort, the banking sector is once again poised to play a crucial role in accelerating economic growth and achieving the Nigerian government’s 2030 vision of a trillion-dollar economy.
On 28 March 2024, the CBN announced a directive for banks in Nigeria to recapitalize with the pivotal objectives of strengthening the banking industry and mitigating systemic risks. The CBN’s new guidelines on the minimum capital requirement for banks range from N50 billion to N500 billion —depending on the type of licence held by the bank— and the fresh funds must not necessarily be related to the existing shareholder funds. In total, approximately N4.14 trillion is expected to be raised between now and March 31, 2026.
Experts have said true financial security and wealth creation comes from owning assets whether stocks, bonds, or a piece of real estate. In all, as they encourage people to own assets of different classes, they are always making a case for people to own shares of banks, especially UBA Plc whose share stood at N24.25 per unit at the close of Wednesday’s trading.
These analysts relayed their trust and overall satisfaction with the bank, as well as recommended it to other investors. They rated the bank on five criteria: trustworthiness, terms and conditions (such as fees and rates), customer service (wait times and helpfulness of employees), digital services (ease of using the website and app), and quality of financial advice.
However, a significantly challenged macroeconomic environment, characterised by high inflation following the significant devaluation of the naira, presents a more difficult hurdle for banks this time around. But despite Nigeria’s macro headwinds which trigger the proposed upward review of the banks’ capital base, Alawuba exercises no fear with UBA’s huge customer deposits of N18 trillion, shareholders’ fund of N2 trillion and customer base of about 45 million across Africa. Indeed, UBA operates with the highest licence available —which is an international licence.
On the value proposition of UBA to investors ahead of the fresh banking sector recapitalisation, the UBA GMD speaks more with a strong conviction; ”UBA is that bank that investors can look onto. In 2023, our capital appreciation was one of the highest on the exchange. For the past two years, our dividend yield has been above 12% and when you look at the bank presence in 24 countries, it shows a diversification of income stream but also highlights the unique investment proposition we offer,” Alawuba said.
While projecting that the shares of UBA could hit N100 per unit on the stock exchange, the bank boss added, “When you invest in UBA shares, you are essentially gaining exposure to the economic potential of 24 different markets. Therefore, it is crucial for us to communicate to Nigerian investors that UBA’s current share price is undervalued, presenting a substantial opportunity for those looking to invest in a bank with a truly global footprint.”
With a focus on sustainability, innovation, and inclusivity, UBA is not only a financial institution but a key enabler of Africa’s long-term growth and global integration. These have positioned the bank well for the future.
With generous bonuses and promotions and a variety of products, UBA has become a popular choice for consumers across the continent.
As the bank celebrates 75 years, it reassures customers of its commitment to strong corporate governance built on the foundation of trust, adaptability, strong relationships, innovation, and service excellence.
By Adedapo Adesanya
The Senate has demanded detailed explanation from the Central Bank of Nigeria (CBN) over the alleged non-remittance of N1.44 trillion in operating surplus.
The Senate Committee on Banking, Insurance and Other Financial Institutions, chaired by Mr Tokunbo Abiru, opened its statutory briefing with a firm call for transparency at the apex bank, noting that the Auditor-General’s query on the unremitted funds required a full, clear and documented response, insisting that public trust in monetary governance depended on strict accountability.
While acknowledging the CBN’s achievements in stabilising the foreign exchange market and reducing inflation, Mr Abiru underscored that such progress must be accompanied by institutional responsibility.
He stated the Senate expected the CBN to explain the circumstances surrounding the query, outline corrective steps taken and reveal safeguards against future lapses.
This came as the Governor of the central bank, Mr Yemi Cardoso, appeared before the senate committee and offered an extensive review of economic conditions, asserting that Nigeria was experiencing renewed macroeconomic stability across major indicators.
Mr Cardoso attributed the progress to bold monetary reforms, foreign-exchange liberalisation and disciplined liquidity management implemented since mid-2025.
According to him, headline inflation had declined for seven consecutive months, from 34.6 per cent in November 2024 to 16.05 per cent in October 2025, marking the steepest and longest disinflation trend in over a decade.
Food inflation accruing to him also slowed to 13.12 per cent, supported by improved supply conditions and exchange-rate predictability.
The CBN governor described the foreign-exchange market as fundamentally transformed, adding that speculative attacks and arbitrage opportunities had largely disappeared.
According to him, the premium between the official and parallel markets had fallen to below two per cent, compared to over 60 per cent a year earlier. As of November 26, the naira traded at N1,442.92 per dollar at the Nigerian Foreign Exchange Market, stronger than the N1,551 average recorded in the first half of 2025.
He also announced a sharp rise in external reserves to $46.7 billion, the highest in nearly seven years and sufficient to cover over ten months of imports.
Diaspora remittances, he noted, had tripled to about $600 million monthly, while foreign capital inflows reached $20.98 billion in the first ten months of 2025, 70 per cent higher than in 2024 and more than four times the 2023 figure.
Cardoso further confirmed that the CBN had fully cleared the $7 billion verified FX backlog, restoring investor confidence and strengthening Nigeria’s balance-of-payments position.
On banking-sector stability, he reported that recapitalisation efforts were progressing smoothly. Twenty-seven banks had already raised new capital, with sixteen meeting or surpassing the new regulatory thresholds ahead of the March 31, 2026 deadline, highlighting improvements in ATM cash availability, digital-payments oversight and cybersecurity compliance.
Despite the positive indicators, the Senate sought clarity on several policy decisions.
Mr Abiru pressed for explanations on the sustained 45 per cent Cash Reserve Ratio (CRR), the 75 per cent CRR applied to non-Treasury Single Account public-sector deposits, FX forward settlements, mutilated naira notes in circulation, excessive bank charges, failed electronic transactions and the compliance of CBN subsidiaries with parliamentary oversight.
He also requested an update on the activities of the Financial Services Regulatory Coordinating Committee, arguing that stronger inter-agency cooperation was necessary to maintain public confidence.
The session later moved into a closed-door meeting.
By Modupe Gbadeyanka
About N3.6 trillion has been repaid to the Central Bank of Nigeria (CBN) by the Asset Management Corporation of Nigeria (AMCON) since its inception in 2010.
This information was revealed by the chief executive of AMCON, Mr Gbenga Alade, during a media parley to update the press on the activities of the agency.
Mr Alade said at the moment, the organisation still owes the central bank about N3 trillion for toxic assets of banks in the country.
He praised the organisation for its asset recovery drive, stressing that when compared with others across the world, Nigeria has done well.
“It is important to stress that the corporation has done tremendously well, especially when compared to other notable government-owned Asset Management Corporations around the world.
“Based on the balance at purchase, AMCON outperformed other Asset Management Corporations all over the world by achieving over 87 per cent in recoveries despite the unique challenges associated with debt recovery in Nigeria.
“The Malaysian Danaharta, which is adjudged one of the best performing Asset Management Corporation’s, only achieved 58 per cent. The Chinese Asset Management Corporation, despite its stricter laws, achieved just 33 per cent.
“Only the Korean Asset Management Corporation (KAMCO), South Korea, has achieved more recoveries than AMCON, with about 100 per cent. This was due to their brute force with which they chased the obligors.
“Despite KAMCO’s recovery records, the agency is still operational to date with slight realignments in its mandate.
“Other noted Asset Management Corporations that have transitioned into a perpetual institution of the various governments include, China Asset Management Company, Federal Deposit Insurance Corporation (FDIC) USA, and KFW Germany.
“So, gentlemen, without sounding immodest, AMCON has done well, and we will not relent until all the outstanding debts are fully realized,” Mr Alade stated.
On the financial performance of AMCON, he said last year, the firm posted a revenue of N156.25 billion and operating expenses of N29.04 billion, while for the 2025 fiscal year should be a revenue of N215.15 billion and operating expenses of N29.06 billion.
By Modupe Gbadeyanka
One of the non-interest banks in Nigeria, The Alternative Bank (AltBank), has opened a new branch in Effurun, Delta State.
The new office will serve the Edo-Delta region and provide purposeful banking and real financial empowerment for individuals, entrepreneurs, and businesses, a statement from the firm stated.
The lender disclosed that the Effurun branch is a bold move in its mission to reshape banking in Nigeria.
The launch was graced by key dignitaries, including the Ovie of Uvwie Kingdom, Emmanuel Ekemejewa Sideso Abe I; the Chairman of Uvwie Local Government, Anthony O. Ofoni, represented his vice, Andrew Agagbo; and the Special Adviser to the Governor of Delta State on Community Development, Mr Ernest Airoboyi; amongst others.
The Divisional Head for South at The Alternative Bank, Mr Chukwuemeka Agada, emphasised the institution’s commitment to Warri and its surrounding communities.
“By establishing a presence here, we are initiating a transformation in the way banking serves the people of Delta. Our purpose-driven approach ensures that customers’ financial goals are not just met but exceeded,” he stated.
“This branch represents our pledge to empower Warri’s dynamic businesses and families, providing them with the tools to grow without compromise,” Mr Agada added.
“We understand the heartbeat of this community, and we are excited to integrate our bank into the fabric of this dynamic region,” he stated further.
On his part, the representative of the Ovie, Mr Samuel Eshenake, challenged the bank to facilitate development and employment within the Effurun community.
The Regional Head for Edo/Delta at The Alternative Bank, Mr Akanni Owolabi, embraced this challenge, pledging that the bank will work sustainably to drive local commerce.
“At The Alternative Bank, we are committed to being an active partner in the development of Effurun. We see this branch as a catalyst for creating opportunities, driving employment, and supporting the growth of local businesses.
“Our mission is to empower this community, ensuring that every step forward is one of progress, prosperity, and shared success.”
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