United Bank for Africa (UBA) Plc plans to raise an additional ₦144.8 billion this year as the lender works to meet the Central Bank of Nigeria’s new capital requirement and support its international expansion strategy.
The latest fundraising effort follows a successful ₦240 billion rights issue which brings UBA closer to the ₦500 billion minimum capital threshold set by the regulator.
The new capital will be deployed into technology investment and business growth initiatives across Nigeria, Africa and new markets, according to Chief Executive Officer Oliver Alawuba.
UBA, which currently operates in 24 countries, aims to strengthen its presence further by expanding into France and Saudi Arabia.
The bank’s broader strategy focuses on enhancing service delivery through technological advancement and increasing its global footprint in line with emerging market opportunities.
In an emailed statement, Alawuba explained that the additional capital will position UBA for sustainable growth and enable it to take advantage of opportunities in both local and international markets.
The bank is committed to building resilience against economic challenges, including high inflation and currency volatility following Nigeria’s 2023 foreign exchange reforms.
The Central Bank of Nigeria last year announced new capital requirements for the banking sector and mandated banks to achieve the set thresholds within a two-year timeframe.
The policy aims to fortify the financial system amid a weak economy and persistent inflationary pressures.
UBA joins a growing list of Nigerian banks racing to strengthen their capital base.
Access Holdings Plc recently announced that it had surpassed the capital requirement after raising ₦351 billion through a rights issue.
