Onome Amuge
United Bank for Africa (UBA) has extended the deadline for its ongoing rights issue, giving investors two additional weeks to buy into its latest capital raising exercise aimed at meeting stricter regulatory requirements.
The offer, which was originally scheduled to close on Friday, September 5, will now remain open until September 19 following approval from the Securities and Exchange Commission (SEC), according to a statement filed on the Nigerian Exchange and signed by Bili Odum, the bank’s group company secretary.
UBA said the extension was designed to provide shareholders with additional time to fully exercise their rights and participate in the rights issue,” which involves 3.16 billion ordinary shares of 50 kobo each priced at N50 per share. If fully subscribed, the offer would raise more than N157 billion, strengthening the pan-African lender’s capital buffers.
The capital raising drive comes in response to the Central Bank of Nigeria’s (CBN) recapitalisation directive, which compels banks to shore up their balance sheets amid currency volatility, high inflation, and a more stringent prudential framework. The CBN has set a minimum capital threshold of N500 billion for tier-one lenders, a requirement that has triggered a wave of fundraising initiatives across the banking sector.
UBA, one of Nigeria’s largest lenders with operations in 20 African countries and a presence in London, Paris, and New York, has already tapped shareholders once in the past year. In November 2024, the bank launched a N239 billion rights issue at N35 per share. Investor appetite was strong, with subscriptions totalling N251 billion; the bank accepted N240 billion, boosting its capital base to N355.2 billion.
The current issue, which is being managed by United Capital Securities, is structured on the basis of one new share for every thirteen ordinary shares held as of July 16, 2025. If fully taken up, UBA would move significantly closer to the CBN’s N500 billion capital floor, positioning itself more competitively in the banking sector.
The fundraising push is underpinned by strong financial performance. In the first quarter of 2025, UBA posted a pre-tax profit of N204.27 billion, up 30.7 per cent from a year earlier. Net profit climbed 33.2 per cent to N189.84 billion. Interest income rose 36 per cent year-on-year to N599.83 billion, driven by higher earnings from investment securities, which rose 45 per cent to N291.86 billion, and loans and advances, which grew 31 per cent to N260.56 billion.
Non-interest income also contributed meaningfully, supported by fee and commission income. Electronic banking fees rose 7.9 per cent to N47.84 billion, while account maintenance charges increased 11.1 per cent to N10.39 billion.
Analysts say UBA’s capital raising reflects both regulatory necessity and the lender’s ambition to consolidate its position as a pan-African banking powerhouse. With more than 35 million customers, the bank has been a notable beneficiary of digital adoption and cross-border trade flows, particularly in West and Central Africa.
