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 Central Bank of Nigeria (CBN) has directed banks and other financial institutions to submit monthly reports on failed electronic transactions across digital channels, as part of new compliance measures introduced in its revised Guide to Charges.
The directive was contained in a circular titled Exposure Draft of the Guide to Charges by Banks and Other Financial Institutions in Nigeria, 2026 (The Guide) and signed by the Director of the Financial Policy and Regulation Department, Mrs Rita Sike.
According to the apex bank, Chief Compliance Officers and Heads of Information Technology in financial institutions are required to jointly render electronic reports of all failed transactions conducted via Automated Teller Machines, Point of Sale terminals, mobile channels, web platforms, and other electronic systems.
The circular read, “The Chief Compliance Officer and Head Information Technology shall jointly render monthly reports electronically, of all failed electronic transactions via various e-channels (ATM, PoS, mobile, web/internet and related channels) that originate or terminate in the institution.”
The reports are to be submitted to designated CBN email addresses, reinforcing the regulator’s push for stricter monitoring of service failures across the banking system.
Beyond the reporting requirement, the CBN also introduced broader accountability measures, placing responsibility on top management of financial institutions to ensure strict adherence to the new guide.
Executive Compliance Officers or Managing Directors are mandated to cascade compliance expectations across all business units and ensure that banking systems are configured to apply only approved charges.
Specifically, the regulator directed that Heads of Information Technology must ensure that “all systems configurations only capture and allow posting of charges as permitted and described in this Guide,” while Chief Compliance Officers are to monitor strict compliance with the framework.
The revised guide, effective May 1, 2026, replaces the 2020 version and provides a comprehensive framework for charges across banking and other financial services.
The CBN explained that the review was aimed at promoting a safe and sound financial system, encouraging innovation, and expanding financial inclusion through lower tariffs on micropayments and transactions.
It added that the revised framework would strengthen oversight and accountability, encourage the adoption of electronic payment channels, and accommodate new industry participants.
Business Post also reported that the regulator has raised ATM card fees by 50 per cent to N1,500 and scrapped the monthly maintenance charge.
By Aduragbemi Omiyale
The Central Bank of Nigeria (CBN) has proposed that financial institutions operating in the country should charge N150 for the e-dividend mandate processing fee from May 1, 2026.
This was contained in the latest Guide to Charges by Banks and Other Financial Institutions in Nigeria, signed by the Director of the Financial Policy and Regulation Department of the CBN, Ms Rita Sikе.
The move is to promote a safe and sound financial system in Nigeria, accelerate the adoption of innovative financial services, financial inclusion and micropayments/transactions.
The reviewed guide, according to the central bank, provides for an increased range of financial services, encourages development of innovative products, strengthens responsibility for oversight and accountability and promotes financial inclusion through lower tariffs for micropayments/transactions.
It also reviewed some charges for banking services to encourage increased adoption of electronic channels and accommodate new industry participants since the issuance of the 2020 guide.
“In view of the above, the draft guide is hereby exposed to members of the public for their comments/input on the proposed fees contained therein. Comments are to be sent to [email protected] on or before May 08, 2026,” a part of the note stated.
In the draft, the banking sector regulator is suggesting the payment of N1,500 for local debit card issuance and replacement by customers and a $10 annual fee for foreign currency-denominated debit/credit cards.
For on-site ATM transactions, a charge of N100 per N20,000 withdrawal was proposed and N100 plus a surcharge of not more than N500 per N20,000 withdrawal. It emphasised that the surcharge, which is an income of the ATM deployer/acquirer, shall be disclosed at the point of withdrawal to the consumer.
The bank also said that for electronic fund transfers below N5,000, no fee would be collected, but from N5,000 to N50,000, customers would part with N10, and for transfers above N50,000, the fee of N50 would be paid, while for microfinance banks, there would be the settlement bank’s charge plus 10 per cent of the charge.
The CBN noted that this guide applies to commercial banks, merchant banks, Payment Service Banks (PSBs), non-interest banks, microfinance banks, finance companies, Primary Mortgage Banks (PMBs), Development Finance Institutions (DFIs), credit guarantee companies, Mobile Money Operators (MMOs), and any other institution as may be designated by it.
In today’s rapidly evolving business environment, organisations face heightened competition, shifting workforce expectations, and increasing pressure to optimise productivity. Amid these dynamics, one truth has become increasingly clear: employees’ financial well-being is directly tied to organisational performance.
Employees who are financially secure demonstrate greater commitment, higher productivity, reduced absenteeism, and stronger alignment with company objectives. Conversely, financial stress has emerged as a leading contributor to disengagement, declining morale, and weakened performance across all levels of the workforce.
At Stanbic IBTC, we recognise this critical relationship between employee financial health and business outcomes. This insight led us to engineer Employee Value Banking (EVB)—a strategic, comprehensive, and future-proof solution designed to help organisations strengthen their workforce, elevate their value proposition, and drive long-term business sustainability.
EVB is a transformational partnership model aligning employee wellbeing with corporate productivity, risk reduction, and efficiency.
A Holistic, Employee-Centric Banking Architecture
EVB is built on the understanding that employees across varying grades and income brackets have unique financial realities. By offering a robust suite of banking, investment, insurance, and advisory services tailored to diverse needs, EVB empowers organisations to meaningfully enhance their workforce’s financial security and stability.
Key Components of the EVB Suite
- Digital Unsecured Personal Loans with Flexible Repayment
Employees gain access to seamless, digitally processed loans that allow them to meet immediate financial needs with ease.
Flexible repayment structures reduce financial strain while supporting responsible borrowing behaviour.
- Tailored Savings and Investment Solutions
Through structured savings plans, mutual funds, and diverse investment options, employees are empowered to build wealth over time.
This fosters discipline, long-term planning, and financial resilience.
- Pension and Asset Management Services
With Stanbic IBTC Pension Managers and Stanbic IBTC Asset Management, employees benefit from expert retirement guidance, wealth advisory, and long-term financial structuring—ensuring a secure and predictable future.
- Comprehensive Insurance Cover (Life, Health & Assets)
Employees and their families enjoy protection against major life risks, including health emergencies, life insurance, and property coverage.
This security enhances peace of mind and reduces workplace anxiety.
- Mortgage Support at a Competitive Single-Digit Rate of 9.75%
Homeownership remains a powerful symbol of stability and success.
Through EVB’s highly competitive mortgage solution, 774 families have successfully become homeowners from 2024 to date, demonstrating the program’s profound and measurable impact.
A Structured, Responsible, and Risk-Free Lending Model
One of the core strengths of EVB is its cadre-based lending framework, which aligns all loan offerings with employee grade levels, income bands, and organisational hierarchy. This ensures:
- Responsible and sustainable lending behaviours
- Protection against over-borrowing
- Stronger financial discipline
- Greater alignment with corporate HR structures
What distinctly sets EVB apart is its employer-focused risk mitigation. EVB’s structure ensures employers face no risk, making it uniquely designed for seamless adoption compared to standard banking programs.
All loans provided under the program are fully insured, meaning organisations carry:
- Zero liability
- Zero indemnity exposure
- Zero financial risk
This allows HR and management teams to expand their employee value proposition without adjusting internal financial structures or bearing additional costs.
Beyond Banking: Building a Financially Resilient Workforce
Financial empowerment is not achieved solely through products; it requires education, behavioural change, and consistent guidance.
Further differentiating EVB, Financial Fitness Workshops and complimentary Financial Health Checks are embedded as core components, giving employees ongoing support that competitors rarely offer.
These workshops cover:
- Personal budgeting and cash flow management
- Savings and investment strategies
- Smart debt management
- Retirement and pension planning
- Wealth creation principles
By equipping employees with financial knowledge, organisations reduce anxiety, enhance decision-making, and cultivate a more confident, resilient, and empowered workforce.
A Strategic Partnership That Delivers Sustained Organisational Value
EVB enables organisations to build a healthier, more motivated, and higher-performing workforce.
It is not a product—it is a strategic collaboration that enhances organisational culture, strengthens HR capability, and improves employer brand reputation.
Through EVB, organisations benefit from:
- Higher employee engagement
- Improved productivity and performance
- Reduced financial stress across all workforce levels
- Enhanced talent attraction and retention
- A stronger, richer reward and well-being structure
- A fully digital, modern, and efficient employee banking experience
EVB reflects Stanbic IBTC’s long-standing commitment to supporting organisations by empowering the individuals who drive their success.
Employee Value Banking (EVB) is a pivotal advancement in corporate banking. Where traditional bank–corporate relationships focused on organisational accounts and financial transactions, EVB introduces a holistic, human-centric model that puts employees’ well-being at the core of corporate financial services.
Through EVB, Stanbic IBTC has:
- Transitioned corporate banking from a transactional model to a value-driven partnership
- Expanded the definition of the corporate customer to include the entire workforce
- Integrated banking, pensions, investments, mortgages, insurance, and financial education into a unified ecosystem
- Elevated corporate banking into a strategic enabler of productivity, well-being, and business sustainability
- Positioned financial well-being as a competitive advantage for modern organisations
EVB has redefined the future of corporate banking, transforming it from a service function into a lever for organisational excellence, employee empowerment, and value creation.
Stanbic IBTC drives this change, enabling businesses to build secure, high-performing workforces.
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