Nigeria: UBA surpasses N500bn capital threshold ahead of CBN recapitalisation deadline

United Bank for Africa Plc (UBA) has exceeded the N500 billion minimum capital requirement set by the Central Bank of Nigeria (CBN) for banks operating with international licences, well ahead of the regulatory deadline.

As of its 2025 half-year audited results, UBA’s share capital and share premium stood at about N350 billion. This position was significantly strengthened following the successful completion of the second tranche of the bank’s Rights Issue, through which the Securities and Exchange Commission (SEC) approved the allotment of N157 billion to shareholders. With the new injection, UBA’s total share capital now exceeds the N500 billion benchmark prescribed by the CBN.

The development confirms the strength of the bank’s balance sheet and places it fully in compliance with the CBN’s revised capital requirements.

The CBN had announced a two-year banking sector recapitalisation programme on March 28, 2024, which took effect from April 1, 2024. Under the framework, commercial banks are required to maintain minimum capital levels of N500 billion for international licences, N200 billion for national licences and N50 billion for regional licences. The compliance window runs until March 31, 2026.

According to a joint report by Vetiva Advisory Limited, United Capital and CardinalStone, which acted as advisers to the transaction, the Rights Issue was fully subscribed, raising N157.84 billion. The offer involved 3,156,869,665 ordinary shares priced at N50 per share and was structured on the basis of one new share for every 13 existing shares held as of July 16, 2025.

The advisers noted that at the close of the acceptance period on September 19, 2025, a total of 6,404 applications were received for 4.13 billion shares valued at about N206.7 billion. Following scaling adjustments, the final allotment was reduced to 3.16 billion shares worth N157.84 billion, representing 100 per cent subscription.

Subscription analysis showed that 6,404 valid applications were submitted for 3.57 billion shares valued at N178.3 billion, while 568.7 million shares worth N28.43 billion were deemed invalid. Full acceptances accounted for 453.58 million shares, with partial acceptances totalling 135.27 million shares. In addition, about 2.57 billion renounced shares were reallocated, with applications for additional shares reaching 2.98 billion units valued at N148.86 billion. Of these, 2.57 billion shares valued at N128.4 billion were ultimately allotted after scaling.

The SEC has approved the basis of allotment. PAC Registrars and Investor Services Limited is expected to credit the CSCS accounts of successful allottees by January 16, 2026, while surplus subscription funds will be refunded by January 13, 2026. Shareholders without CSCS accounts will receive their shares through Registrar Identification Numbers, in line with SEC directives on share dematerialisation.

The successful Rights Issue reflects strong investor confidence in UBA and provides additional capital to support the bank’s growth strategy and expansion across its African and international markets.