According to a statement released via email by UBA's Chief Executive Officer, Oliver Alawuba, this planned capital raise, in conjunction with the ₦240 billion already secured through a rights issue, is projected to enable UBA to comfortably meet the CBN's stipulated ₦500 billion minimum capital requirement.
Alawuba emphasized the intended utilization of the newly acquired capital, stating that it will be "duly invested in additional technologies and business growth in Nigeria, across Africa and the globe." This signals UBA's commitment to strengthening its operational infrastructure and pursuing strategic growth opportunities in key markets.
Further outlining the bank's expansionary ambitions, Alawuba revealed that UBA is actively exploring opportunities to establish a presence in France and Saudi Arabia. This move signifies UBA's intent to extend its footprint beyond its current operations in 24 countries, tapping into new markets and diversifying its revenue streams.
The CBN's decision last year to increase the minimum capital requirements for Nigerian banks, with a two-year compliance window, is a strategic response to the prevailing economic challenges in the country. These challenges include high inflation, a struggling economy, and the significant devaluation of the naira following currency reforms in 2023. By bolstering the capital base of Nigerian banks, the authorities aim to fortify the financial sector against these macroeconomic headwinds and enhance its resilience.
UBA's proactive approach to meeting the new capital threshold and pursuing international expansion aligns with the broader industry trend of Nigerian banks adapting to the evolving regulatory landscape and seeking growth opportunities. Earlier this week, Access Holdings Plc, Nigeria's largest lender by assets, announced that it had successfully met the capital target after raising ₦351 billion through a rights issue, demonstrating the sector's responsiveness to the CBN's directive.
UBA's strategic capital raising initiative and its aspirations for expansion into France and Saudi Arabia underscore its ambition to solidify its position as a leading pan-African financial institution with a growing global presence. The successful execution of these plans will be crucial in navigating the current economic climate and capitalizing on future growth opportunities in diverse markets.