UBA Crosses ₦500bn Capital Mark Ahead of Deadline
Atume Terfa
United Bank for Africa (UBA) Plc has taken a decisive lead in Nigeria’s banking sector recapitalisation race, surpassing the Central Bank of Nigeria’s ₦500 billion minimum capital requirement for internationally licensed banks well ahead of the March 31, 2026 deadline.
The Pan-African financial institution crossed the regulatory threshold following the successful completion of a ₦178.3 billion rights issue, pushing its total share capital beyond the CBN’s benchmark for Tier-1 lenders. The offer attracted overwhelming investor interest and was fully subscribed, underscoring strong market confidence in UBA’s long-term growth strategy and balance-sheet strength.
Before the latest capital raise, UBA’s share capital and premium stood at approximately ₦355.2 billion, supported by a ₦239 billion equity injection from a rights issue concluded in November 2024. With the additional proceeds from the recent offer, the bank’s regulatory capital has now climbed comfortably above ₦500 billion, making it one of the earliest institutions to comply with the apex bank’s recapitalisation directive.
The rights issue involved the offer of 3.16 billion ordinary shares priced at ₦50 each. Applications exceeded the offer size by approximately 113 per cent, resulting in proportional scale-downs and final allotments totalling ₦178.3 billion. The Securities and Exchange Commission (SEC) has approved the basis of allotment, while shareholders are expected to receive credited shares shortly.
Analysts say UBA’s early compliance significantly strengthens its resilience against macroeconomic shocks and enhances its capacity to fund large-scale projects across Nigeria and its extensive African footprint. They also note that meeting the capital requirement well ahead of schedule allows the bank to pivot from urgent capital-raising activities to strategic expansion, digital investment, and cross-border financing opportunities.
The CBN’s recapitalisation framework, unveiled in March 2024, mandates internationally licensed banks to maintain a minimum paid-up capital of ₦500 billion, national banks ₦200 billion, and regional banks ₦50 billion by March 2026. The policy aims to reinforce the stability, resilience, and global competitiveness of Nigeria’s banking system.
With this milestone, UBA joins a growing list of top-tier lenders — including Access Bank, Zenith Bank and First Bank of Nigeria — that have either met or are on track to meet the new capital thresholds well ahead of the regulatory deadline.
