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 operating licences of all legacy Bureau De Change (BDC) operators who failed to meet the new licensing requirements have been revoked by the Central Bank of Nigeria (CBN).
This happened after the central bank streamlined the BDCs to 82 in order to sanitise the foreign exchange (FX) market in the country.
The latest development was revealed by the apex bank in its Frequently Asked Questions document on the current reform of the bureau de change, published on its website on Tuesday.
According to the document, the CBN has now enforced the final cutoff, declaring that any BDC that did not meet the requirements by the end of November is no longer recognised.
“The guidelines provided a transition timeline of six months from the effective date, 3 June 2024, with a deadline of 3 December 2024, for all existing BDCs to meet the requirement of the new Guidelines or lose their licence(s). However, the management of the CBN graciously extended this deadline by another six months, which ended 3 June 2025, to give ample time for as many legacy BDCs desirous of meeting the new requirements to do so.
“Consequently, any legacy BDC that failed to meet the requirements of the new Guidelines as of 30 November 2025 has ceased to be a BDC, as its licence no longer exists. Please visit the CBN website for the updated list of existing BDCs in Nigeria,” the apex bank said.
According to the CBN, before its latest decision, an extended compliance window was granted under the revised BDC Guidelines. Existing operators were initially given six months, June 3 to December 3, 2024, to satisfy the new regulatory conditions.
The CBN later granted an additional six-month extension, which elapsed on June 3, 2025, to allow more operators to align with the updated standards.
The new measures form part of broader efforts by the CBN to strengthen transparency, compliance, and stability within Nigeria’s foreign exchange market.
The new CBN regulatory framework for BDCs, introduced in February 2024, mandated BDC operators to meet higher capital requirements. Tier-1 operators are required to meet a minimum capital requirement of N2bn, while Tier-2 operators must meet N500m as MCR.
The bank added that it would continue to receive applications on its Licensing, Approval and Requests Portal from prospective promoters, and those that meet the criteria will be considered for a license.
However, the CBN said it reserves the right to discontinue the licensing of BDCs at any time.
By Modupe Gbadeyanka
A non-bank credit card issuer, 03 Capital, has introduced a travel card designed to unlock the N95 billion festive spending boom in Nigeria.
The new initiative, known as the 03 Capital Blink Travel Card, promotes economic participation among returning Nigerians, expatriates, and tourists.
A statement from the financial technology (fintech) firm is available instantly to use at over 40 million merchants and ATMs nationwide.
The Blink Card, to be issued in both digital and physical form, is loaded with currency from any foreign bank card, converted to Naira, enabling transactions to be completed in the local currency.
The card offers tap-to-pay and cash withdrawals at over 40 million merchants and ATMs nationwide, making it the ideal solution for visitors to Nigeria.
It also avails Nigerians in the Diaspora to spend like locals when they return to their country of origin.
Payments for goods and services can be completed via the virtual Blink Card, linked to the O3Cards app. Funds can also be transferred instantly to all local banks and other financial institutions.
According to the World Bank, remittance inflows account for approximately 5.6 per cent of Nigeria’s gross domestic product (GDP), and the resultant spending power is unlocked when the Diaspora returns home for the festive period.
In December 2024, about N95 billion was injected into the Nigerian economy by inbound passengers – 90 per cent being diasporic Nigerians – spending on short-let accommodation and hotels, events and hospitality, nightlife and dining, and vehicle rentals. The launch of the Blink Card promises to spur this spending further, providing a significant boost to local businesses.
Blink Cards are available for collection at all Nigerian international airports, offering an immediate and hassle-free route to financial empowerment for people arriving in the country.
Blink Card carriers benefit from increased convenience, flexibility, and safety by not needing to carry large amounts of physical cash, while the ability to pre-load cards promotes smarter budgeting practices.
“We are excited to launch the Blink Card to promote greater economic participation among visitors to Nigeria.
“The card removes the needless friction and costs involved in legacy foreign exchange and cash payment processes, offering a quicker and more transparent option for spending in the country.
“As Nigerians begin travelling home for Christmas – combined with the regular traffic of arriving tourists, expatriates, and businesspeople – this is the perfect time to launch a solution catering to the financial needs of visitors, tapping into the seasonal spending boom which provides an annual lifeline for local economies and SMEs,” the chief executive of 03 Capital, Abimbola Pinheiro, stated.
By Modupe Gbadeyanka
Technology leaders from across Nigeria’s digital finance ecosystem recently converged on Eko Convention Centre in Lagos to explore pathways for expanding credit access to underserved communities.
It platform for this was the 2025 Committee of e-Business Industry Heads (CeBIH) Annual Conference themed Reimagining Financial Inclusion through Cultural Shifts in Consumer Credit. Interswitch was a returning gold sponsor.
At a high-impact panel session titled Alternative Credit Scoring for the Underserved, moderated by Wunmi Ogunbiyi of the CeBIH Advisory Council, the Divisional Head of Product Management and Solution Delivery at Verve International, a subsidiary of Interswitch Group, Mr Ademola Adeniran, examined how alternative data and digital intelligence can unlock credit for millions excluded by conventional financial models.
“For us, this conversation goes beyond technology. It is about designing credit systems that truly reflect African realities.
“Millions transact daily outside traditional banking frameworks, and alternative credit scoring enables us to recognise that economic activity and responsibly convert it into access to finance.
“At Verve and Interswitch, we are committed to building the digital infrastructure that makes this inclusion scalable and sustainable,” Mr Adeniran stated.
Also, the Vice President for Sales and Account Management, Digital Infrastructure and Managed Services at Interswitch Systegra, Ms Robinta Aluyi, stressed the importance of African-led solutions in addressing the continent’s financial challenges, noting that sustainable progress must be rooted in local realities.
Interswitch’s strength, she said, lies in the fact that it was built on the continent, for the continent, with solutions designed to serve individuals, small businesses, enterprises, and government institutions across every layer of the payment value chain.
She also emphasized the company’s purpose-driven approach to building the infrastructure that powers Africa’s digital economy and enabling secure money movement on a scale.
“Interswitch helps people navigate their daily lives with greater ease. We make transactions flow safely and reliably. We do this by connecting banks, supporting secure and reliable payments, and strengthening the entire value chain of digital finance.
“Today, we hold a significant portion of the market, and that achievement reflects the deep trust our banking and fintech partners place in our platforms. We continue to deliver because the ecosystem has worked with us every step of the way,” Ms Aliyu said.
There were also contributions from Munachimso Duru, Head, Products, Partnership and Innovation, Afrigopay Financial Services Limited; Damola Giwa, Country Manager, Visa West Africa; Nike Kolawole, representing Aisha Abdullahi, Executive Director, Credit and Portfolio Management, CREDICORP; and Ifeanyi Chukuwekem, Head, Corporate Strategy Department, eTranzact, offering a broad industry perspective on the future of responsible credit delivery.
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