Tony Elumelu, Chairman of United Bank for Africa (UBA) Plc, has significantly increased his stake in the bank through a strategic acquisition of over 45 million shares.
This move shows his commitment to bolstering UBA’s capital base in alignment with the Central Bank of Nigeria’s (CBN) recent directives.
Share Acquisition Details
On May 23, 2025, Heirs Holdings Limited—Elumelu’s investment firm—purchased 45,034,044 UBA shares at ₦34.30 each, totalling approximately ₦1.54 billion. This transaction, disclosed in a regulatory filing by UBA’s Company Secretary, Bili Odum, elevates Heirs Holdings’ ownership from 5.30% to 5.43%, equating to 1.86 billion shares in total.
The acquisition follows Elumelu’s 2023 purchase of 161.9 million shares, which increased his total holdings to 2.54 billion shares (both direct and indirect).
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Capital Raise Strategy
UBA is proactively working to meet the CBN’s new capital requirement of ₦500 billion for commercial banks with international licenses, set to be enforced by March 2026. Currently, UBA’s capital base stands at ₦355.2 billion. To bridge the gap, the bank plans to raise an additional ₦144.8 billion in the third quarter of 2025.
In a previous capital raise concluded in December 2024, UBA offered 6.84 billion ordinary shares at ₦35 per share through a rights issue, successfully raising ₦251 billion. The offering was oversubscribed by ₦11.6 billion and received CBN approval.
Financial Performance and Outlook
UBA reported a robust pre-tax profit of ₦204.2 billion in Q1 2025, marking a 30.65% increase from the same period in 2024. This growth was driven by a 36.09% rise in interest income, totalling ₦599.8 billion, primarily from loans, advances, and investment securities.
The bank’s strategic initiatives, including digital transformation and expansion into new markets, are aimed at sustaining this growth trajectory. Notably, UBA has plans to commence operations in France, further solidifying its international presence.
