United Bank for Africa (UBA) Plc, one of Nigeria’s biggest banking groups, has commenced the second tranche of its ₦400 billion ($260.7 million) capital raise programme as it moves to meet new regulatory requirements and fund future growth.
The bank announced on Wednesday the launch of a rights issue offering 3,156,869,665 ordinary shares at ₦50.00 per share, available to existing shareholders. The offer, which has been approved by the Securities and Exchange Commission (SEC), is structured based on one new ordinary share for every 13 shares held as of the qualification date.
“This rights issue represents the second tranche under the bank’s ₦400 billion Equity Shelf Programme, which was duly registered with the SEC,” the statement said.
UBA noted that the capital raise is aimed at ensuring compliance with the Central Bank of Nigeria’s (CBN) new minimum capital requirements for banks and aligns with its long-term strategic objectives.
In March 2024, the CBN directed all banks to increase their capital bases by March 2026, triggering a wave of recapitalisation and potential consolidation across the financial sector. Under the directive, commercial banks with international licences are required to raise their minimum capital to ₦500 billion ($325.8 milion).
The rules, designed to enhance the resilience and stability of the financial system, have sparked aggressive fundraising efforts across the banking industry. According to reports, UBA launched the first tranche of its capital raise in June 2024, securing ₦61.2 billion ($39.9 million) through a private placement.
Other major lenders, including Guaranty Trust Holding Company, Access Bank, Zenith Bank, Fidelity Bank, and FCMB, have collectively raised ₦1.27 trillion ($800.3 million) as part of the initial phase of their recapitalisation plans, positioning themselves to meet the apex bank’s requirements and support future growth.
Beyond regulatory compliance, UBA said the additional capital would support its regional and global expansion plans, as well as deliver long-term value to shareholders.
The group operates in 20 African countries, with additional presence in the United Kingdom, the United States, the UAE, and France, making it one of Africa’s most internationally diversified banking groups.
The figures were originally reported in naira, and have been converted using $1 = ₦1,534.5 as of July 29, 2025.
