The Chairman of United Bank for Africa Plc (UBA), Tony Elumelu, has reaffirmed the bank’s commitment to meeting the Central Bank of Nigeria’s (CBN) revised minimum capital requirement of ₦500 billion for international commercial banks by the third quarter of 2025, well ahead of the official deadline.
The CBN had earlier raised the capital thresholds for banks, setting the benchmark at ₦500 billion for those with international licenses and ₦200 billion for national banks.
Unveiled on March 28, 2024, the new policy seeks to substantially increase the minimum capital for banks according to their operational reach. Under the directive, commercial banks operating internationally are required to bolster their capital base to ₦500 billion.
Speaking during UBA’s 63rd Annual General Meeting (AGM) held in Abuja, Elumelu acknowledged that the apex bank’s new minimum capital policy is aimed at fortifying the financial sector and enhancing its ability to effectively support the broader economy.
“Banks were given until March 2026 to comply with these new performance requirements, with options including raising additional capital, pursuing mergers and acquisitions, or downgrading their licenses to align with current capital levels,” he added.
Elumelu further explained that UBA initiated its capital-raising efforts in line with the CBN directive, launching its first rights issue in November 2024.
“The rights issue closed in December 2024, with 6.84 billion ordinary shares of 50 kobo each offered to existing shareholders at ₦35 per share,” he said.
He disclosed that the offering was oversubscribed by ₦11.6 billion (4.8%), with the total amount raised, ₦251.0 billion, verified and approved by the Central Bank of Nigeria.
According to Elumelu, “The final capital raise is expected to be completed in Q3 2025, well ahead of the CBN deadline.”
He emphasized that the funds secured through the rights issue will be channeled towards expanding UBA’s digital banking capabilities and business growth, further strengthening the bank’s legacy built over the past seven and a half decades.
UBA’s Group Managing Director/CEO, Oliver Alawuba, also reassured stakeholders of the bank’s commitment to maintaining strong shareholder returns.
“What we can assure our shareholders today is that UBA will continue to pay more dividends. The total dividends to be paid for the year ended December 31, 2024, amount to ₦102 billion. And this is just the beginning,” he added.
He stressed that UBA has outgrown the era of distributing minimal dividends.
“I’m sure our shareholders never imagined that UBA would pay a total dividend of five naira in one year.
“When you look at the dividend yield, we are the highest among our peers—and we will continue to deliver on that,” he added.
Addressing future expectations, Alawuba stated that UBA, with operations in 24 countries, is making significant investments in digital banking, seen as the future of the financial industry.
He noted that these strategic initiatives would enhance revenue generation, enabling the bank to sustain higher dividend payments in the years ahead.
According to the CBN’s circular, banks are encouraged to meet the new minimum capital thresholds through various measures such as injecting fresh equity via private placements, rights issues, public offers, mergers and acquisitions, or by adjusting their license authorizations where necessary.
The circular also clarified that the minimum capital would comprise only paid-up capital and share premium, explicitly excluding shareholders’ funds from the calculation.
