As Nigeria’s banking sector races against time to meet the Central Bank of Nigeria (CBN)’s recapitalisation deadline, United Bank for Africa Plc (UBA) has emerged early and bold, announcing a ₦157 billion rights issue designed not only to meet regulatory thresholds but also to reinforce its vision of continental dominance.
In a statement filed with the Nigerian Exchange Limited (NGX), the bank revealed that it has submitted an application, through its stockbrokers, United Capital Securities Limited, to list 3,156,869,665 ordinary shares at ₦50.00 per share, offered on the basis of one new share for every thirteen held as of the July 16, 2025 qualification date.
On paper, it’s a capital raise. But in reality, this marks a defining moment, a test of trust, a reflection of resilience, and a call for partnership at a time when Nigerian banks face intense scrutiny and expectations under the recapitalisation mandate.
A Sector on Deadline, a Bank on Mission
The CBN’s recapitalisation directive has jolted the banking industry into action, giving operators until March 2026 to significantly increase their capital base. For some banks, this has triggered anxiety and hurried strategy meetings. But for UBA, a bank that has just recorded ₦803.73 billion in profit before tax in 2024, the approach has been calm, calculated, and confident.
The bank’s performance in recent years has placed it in a strong position. Yet, it has opted not to rest on past gains. Instead, it has opened its doors once again to shareholders, not just institutional giants, but ordinary Nigerians whose loyalty helped build the brand over decades.
The Human Face of Recapitalisation
For Female shareholders, a 72-year-old retired trader who has held UBA shares since 2007, the announcement stirred a familiar tension: to buy in again or to let it pass?
“They’re asking us to walk with them again, just like we did during the last recapitalisation,” she says, flipping through old share certificates with a sense of pride. “I believed in them then. I still do now. But things are harder now, and ₦50 per share is not small money.”
This is the human angle often buried beneath market charts, the emotional economics of Nigerians who have stuck with UBA, sometimes through thick and thin, seeing the bank not only as an investment but as a legacy.
Many retail shareholders, pensioners, and middle-class professionals now face a personal decision. Should they invest more at a time when inflation has squeezed household budgets? Is this rights issue an opportunity for long-term growth, or a risk amid economic volatility?
For a 40-year-old civil servant in Abuja, the answer is clear: “UBA has shown strength over the years. This is not just about recapitalisation; it’s about positioning. I’ll participate — not just for the returns, but because I believe in what they’re building across Africa.”
Confidence and Continuity Amid a Shifting Landscape
While UBA has not detailed how it intends to deploy the funds, market observers believe the capital will be channelled into shoring up regulatory capital buffers, expanding its digital infrastructure, and deepening its pan-African operations. This aligns with UBA’s transformation into a truly transcontinental financial group, a journey that now demands new capital, not because of weakness, but to scale sustainably.
UBA’s confidence also contrasts with the cautious tone from some other Tier-1 banks, many of which are still weighing merger options, public offerings, or private placements. UBA’s swift action places it among the first movers in what is expected to be a high-stakes race toward the CBN’s capital target.
At the NGX, the move has generated momentum, adding to the positive mood after the market added ₦2.3 trillion in value over three trading days. Analysts predict that UBA’s rights issue will catalyse renewed investor interest in banking stocks, particularly as shareholders look for institutions with clear strategies and solid financial health.
Legacy, Loyalty, and the Future of Nigerian Banking
UBA’s rights issue is more than a technical compliance effort, it is a reflection of trust between a bank and its investors. For many of the bank’s shareholders, this isn’t just a transaction. It’s a generational decision rooted in loyalty and legacy.
The stakes are high. The economy is uncertain. But for millions of customers and shareholders ‘from rural retirees to urban professionals’ this capital raise is a reaffirmation of partnership.
As the recapitalisation clock ticks, UBA is not just checking boxes. It’s extending a hand, and a challenge: Believe in the future. Join us to build it.
@2019 The Ameh News: All Rights Reserved
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