UBA Seeks Approval For N157 Billion Rights Issue As CBN Recapitalisation Deadline Looms
- The Central Bank of Nigeria (CBN) reviewed the capital requirements for all banks in March 2024, setting a two-year deadline
- While five banks have met the requirements so far, several others are still applying various strategies to raise the capital
- United Bank for Africa Plc (UBA) has taken a step that will see it finally meet the N500 billion capital required of national commercial banks
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Ruth Okwumbu-Imafidon, a journalist with Legit.ng, has over a decade of experience in business reporting across digital and mainstream media.
The United Bank for Africa Plc has applied for approval to raise ₦157 billion in capital through a rights issue.
This will bring the bank closer to achieving the Central Bank of Nigeria (CBN) recapitalisation target.
The Nigerian Exchange Limited (NGX) has confirmed that UBA sent the notice on Wednesday through its stockbrokers, United Capital Securities Limited.
Source: UGC
In the application, the company asked for approval to carry out a rights issue of 3,156,869,665 ordinary shares of 50 kobo each at ₦50.00 per share.
What is the basis of the offer?
The Punch reports that the rights issue will be conducted on the basis of one new ordinary share for every 13 ordinary shares held as of the close of the qualification date, which has been confirmed to be Wednesday, July 16, 2025.
A statement released and signed by the NGX Head of Issuer Regulation Department, Godstime Iwenekhai, read:
“Trading License Holders are hereby notified that United Bank for Africa Plc (the Company) has through its Stockbrokers, United Capital Securities Limited, submitted an application to Nigerian Exchange Limited for the approval and listing of a Rights Issue of Three Billion, One Hundred and Fifty-Six Million, Eight Hundred and Sixty-Nine Thousand, Six Hundred and Sixty-Five (3,156,869,665) ordinary shares of 50 Kobo each at ₦50.00 per share.
“The Qualification Date for the Rights Issue is 16 July 2025. This is for your information, please.”
UBA seeks N144 billion to meet CBN requirement
At the moment, UBA Plc is one of the banks that have yet to meet the ₦500 billion requirement for national commercial banks.
Recall that Nigerian billionaire, Tony Elumelu recently boosted his stake in UBA, buying 1.2 billion shares within 2 days.
Still, UBA has a deficit of N144.8 billion to reach the requirement. Others like Fidelity Bank still need to raise ₦194.4 billion, while FCMB has to raise ₦90.7 billion.
First Bank of Nigeria also has a gap of ₦78.7 billion, while Sterling Bank still needs to raise ₦70 billion.
There is also Guaranty Trust Bank with a deficit of ₦152.4 billion, but with the recent listing of GT Holding Company (GTCO) on the London Stock Exchange, the bank has inched closer to the requirement.
Source: UGC
The few banks to have met the requirement so far include Access Bank, Zenith Bank, Ecobank, Lotus Bank, and Stanbic IBTC Bank.
Smaller banks begin merger talks as deadline nears
In related news, Legit.ng reported that with the CBN deadline drawing closer, smaller banks are now considering mergers.
The March 31, 2026, deadline is less than nine months away, and reports show that two Nigerian banks are already in merger talks.
One of them currently holds a national license, while the other holds a regional license, and a merger might be the only way they will remain in business after March 2026.
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Source: Legit.ng
