Why Tony Elumelu Is Betting Big On Uba With A Stake Worth Over 80 Million

Tony Elumelu boosted his UBA stake by 27.7 million, becoming the banks largest shareholder with 3.81 billion shares, ensuring strong control.

UBA is raising capital to meet Nigerias new regulatory requirement, with Elumelu protecting his stake against dilution ahead of more share issuances.

Elumelus move reflects his long-term faith in UBAs growth and Africas economic future, prioritizing control amid broader financial commitments and market risks.

Nigerian businessman Tony Elumelu is deepening his bet on United Bank for Africa UBA, one of the continents largest financial institutions. In a move that highlights his long-term commitment to the bank and a calculated assertion of control, Elumelu recently acquired a fresh tranche of shares worth over 27 million, catapulting his stake in UBA above 80 million.

This aggressive accumulation, 1.27 billion shares acquired in just two days, signals much more than investor confidence. It is a statement of intent by Elumelu, who is not only the banks chairman but also its single largest shareholder.

The 26 transactions , all executed between May 29 and 30 on the floor of the Nigerian Exchange NGX, were conducted at an average price of N34.64 0.022 per share. Altogether, the acquisition amounted to N44 billion 27.7 million, signaling Elumelus determination to maintain a steady influence during a time of significant changes in Nigerias banking industry.

Elumelu's strengthened position in UBA, now totaling 3.81 billion shares, comes as Nigerian banks face significant regulatory pressure to raise their capital bases. The Central Bank of Nigeria CBN has directed banks with international licenses to raise their capital base to at least N500 billion 315 million, a sweeping move aimed at strengthening the financial system and preparing local lenders for global competition.

UBA has already made significant headway. The bank completed a rights issue in late 2024 that raised N239.4 billion 143.6 million , lifting its capital base to N355.2 billion 224.4 million. But the job isnt finished yet. To hit the new target, UBA plans to raise an additional N144.8 billion 92 million in the third quarter of 2025.