Elumelu eyes more dividend income from UBA's new shares deal of N44bn

…raises equity control by 1.26bn shares

Tony Elumelu, billionaire chairman of United Bank for Africa (UBA) Plc has consolidated his equity stake in the Tier 1 lender, by acquiring additional 1.26 billion shares in deals worth about N44 billion.

Elumelu purchased these shares from May 29 – May 30, 2025, at an average price of N34.64.

Elumelu made about N7 billion when the bank paid its final dividend of N3 per share in April. Directly and indirectly, he made about N12. 71 billion as dividend income for the financial year ended 2024.

For FY 2024, UBA paid out N171 billion as total dividends to its shareholders, representing a 79 percent increase from the N95.8 billion paid for 2023.

According to June 2 notice at the NGX, Elumelu bought 50 million shares at different prices — N34.70, N34.65, N34.75, and N34.55 — and the last being 17,669,350 shares at N34.70 per share.

Elumelu had bought 45,034,044 shares at N34.3 per share, totaling about N1.53 billion.

United Bank for Africa Plc plans to raise N144.8 billion ($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 N240 billion raised through a rights issue should enable UBA meet the N500 billion minimum capital requirement set by the Central Bank of Nigeria, Oliver Alawuba, chief executive officer said in an emailed statement recently.

United Bank for Africa (UBA) Plc reported robust full-year earnings in 2024 and confirmed it has increased its capital base to N355.2 billion, as the pan-African lender accelerates efforts to meet the Central Bank of Nigeria’s N500 billion minimum capital requirement for international banks.

Speaking at the bank’s 65th Annual General Meeting in Abuja, UBA Chairman Tony Elumelu said the group delivered a profit after tax of N767 billion and gross earnings of N3.2 trillion in 2024—its strongest performance to date.

The bank also saw total deposits surge 42 percent year-on-year to N24.6 trillion, while its loan portfolio expanded 35 percent to N7.5 trillion, reflecting increased support for businesses and economies across Africa.

Iheanyi Nwachukwu

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.