By The Ameh News
United Capital Plc has strengthened its influence within Nigeria’s financial ecosystem following the acquisition of a 5 percent equity stake in Nigerian Exchange Group (NGX Plc), a landmark investment that industry experts say could accelerate capital market development and deepen investor confidence in Africa’s largest economy.
The strategic acquisition, according to the statement Excerpts from the corporate disclosure at the Nigeria exchange traded platform revealed that it has completed on June 15, 2026, gives the Pan-African investment banking and financial services group a significant ownership position in Nigeria’s foremost securities exchange and further underscores its commitment to supporting institutions critical to economic growth and capital formation.
The transaction marks another milestone in United Capital’s aggressive expansion strategy across Africa and comes on the heels of its successful recapitalisation exercise and recent regulatory approvals to commence operations in Ethiopia and Rwanda.
Speaking on the development, the Group Chief Executive Officer of United Capital Plc, Peter Ashade, described the acquisition as a deliberate investment in the future of Nigeria’s capital market.
“This acquisition reflects our confidence in Nigeria’s capital markets and our responsibility to contribute actively to their growth. We have always said that United Capital is not just a participant in Nigeria’s capital markets; we are builders,” Ashade stated.
According to him, the investment represents a strong endorsement of NGX Group’s leadership and strategic direction while positioning United Capital to contribute meaningfully to the evolution of Nigeria’s financial markets.
Ethiopia Licence Opens New Frontier
The Group’s expansion beyond Nigeria has also gathered momentum.
Commenting on the company’s regional growth strategy, Dr. Leo Okafor (PhD), FCIS, Group General Counsel and Company Secretary of United Capital Plc, said the recent approval obtained in Ethiopia was particularly significant.
Dr. Okafor noted that the Ethiopian regulatory approval positions United Capital as the first foreign investment bank licensed to operate in the East African nation.
“The Ethiopian approval is a landmark achievement for the Group. It positions United Capital as the first foreign investment bank licensed to operate in Ethiopia and further advances our Pan-African growth strategy. It also demonstrates the confidence regulators across Africa have in our governance standards, expertise and long-term vision for the continent’s financial markets,” he said.
Industry analysts view Ethiopia as one of Africa’s most promising investment destinations due to its large population, ongoing economic reforms and increasing demand for sophisticated financial services.
Experts React
Reacting to questions from The Ameh News on the significance of United Capital’s acquisition of a stake in NGX and its broader African expansion strategy, economist Celestine Ukpong described the development as a positive signal for both domestic and international investors.
According to Ukpong, the investment demonstrates growing confidence in the resilience and long-term prospects of Nigeria’s capital market despite prevailing macroeconomic challenges.
“When a leading investment banking institution such as United Capital decides to take an ownership position in NGX, it sends a strong signal to the market. It reflects confidence in the future of Nigeria’s capital market and indicates that major institutional players are willing to commit long-term capital to the financial system,” he said.
Ukpong noted that beyond the financial value of the transaction, the move could contribute to market innovation, improved governance standards and increased investor participation.
He added that United Capital’s expansion into Ethiopia and Rwanda positions the company to benefit from the next wave of economic growth across Africa while strengthening regional financial integration.
“This is more than a share acquisition. It is a strategic investment in market infrastructure. The combination of regional expansion and increased participation in NGX places United Capital in a strong position to facilitate cross-border investments and support Africa’s economic transformation agenda,” he added.
Strategic Investment in Market Infrastructure
Also speaking with The Ameh News, Peter Adebayo, FCA, described the acquisition as a well-calculated corporate strategy that aligns with global best practices among leading financial institutions.
According to Adebayo, ownership participation in capital market infrastructure provides opportunities for long-term value creation and strategic collaboration.
“What United Capital has done is not merely a portfolio investment. It is a strategic positioning exercise. Institutions that participate in market infrastructure development often gain deeper insights into market trends, governance evolution and future growth opportunities,” Adebayo explained.
He observed that the acquisition could strengthen collaboration between market operators, issuers, investors and financial intermediaries, thereby enhancing the efficiency and competitiveness of Nigeria’s capital market.
“The significance of this transaction goes beyond the 5 percent stake. It demonstrates confidence in the future of the Nigerian economy and the capital market’s ability to mobilise long-term funds needed for national development,” he said.
Adebayo further noted that becoming the first foreign investment bank licensed in Ethiopia highlights United Capital’s growing reputation across the continent.
“That achievement alone places the institution in a unique category among African financial services firms. It shows strategic foresight and reinforces its ambition of becoming a truly Pan-African financial powerhouse,” he added.
Positioning for the Future
With operations now spanning 12 African countries and service offerings covering investment banking, asset management, securities trading, trusteeship, wealth management and consumer finance, United Capital continues to strengthen its position as one of Africa’s fastest-growing financial services groups.
Analysts believe the NGX investment and Ethiopian market entry will enhance the company’s ability to connect capital with opportunities across the continent while supporting economic growth, financial inclusion and market development.
For stakeholders in Nigeria’s financial sector, the acquisition represents more than a corporate transaction. It is increasingly being viewed as a strategic endorsement of Nigeria’s capital market and a signal that leading African financial institutions remain committed to investing in the continent’s long-term future.
United Capital Plc has acquired a 5% stake in NGX Group while expanding into Ethiopia and Rwanda. Economists and financial experts say the move signals strong confidence in Nigeria’s capital market and Africa’s growth prospects.
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