Nigerian lender United Bank for Africa Plc plans to raise 144.8 billion naira ($90.2 million) in additional capital this year, as it aims to meet the central bank’s new threshold and expand into more countries.
This, and the 240 billion naira raised through a rights issue should enable UBA meet the 500 billion naira minimum capital requirement set by the Central Bank of Nigeria, Oliver Alawuba, chief executive officer said in an emailed statement.
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The capital will then be “duly invested in additional technologies and business growth in Nigeria, across Africa and the globe,” Alawuba said, adding that the lender is looking to expand in France and Saudi Arabia. Nigeria’s UBA to Raise N150bn in fresh Capital, open France UnitUBA has operations in 24 countries at present.
Nigerian authorities last year increased the minimum capital for banks and gave them two years to comply. The move aims to fortify the financial sector against high inflation, a weak economy and the naira’s steep devaluation since currency reforms in 2023.
Access Holdings Plc, the country’s biggest lender by assets said this week it has met the capital target after raising 351 billion naira through a rights issue.
