Tony Elumelu, a prominent figure in the African banking landscape and Chairman of the United Bank for Africa (UBA), has significantly bolstered his ownership stake in the financial institution through a series of substantial share acquisitions. Over a two-day period spanning May 29th and 30th, 2025, Elumelu acquired a staggering 1,267,669,350 shares at an average price of N34.64 per share, amounting to a total investment of N43.91 billion. This acquisition represents a clear demonstration of Elumelu’s unwavering confidence in UBA’s growth trajectory and long-term prospects. The move also underscores his commitment to the bank, where he has played a pivotal role in its expansion and transformation into a Pan-African banking powerhouse.
The acquisition follows an earlier purchase of 45,034,044 shares on May 23rd at N34.30 per share, valued at approximately N1.53 billion, indicating a sustained pattern of investment by Elumelu in UBA. This consistent investment strategy further solidifies his position as a key stakeholder and reinforces his belief in the bank’s underlying strength and resilience. This previous purchase, combined with the latest acquisition, paints a picture of a chairman actively engaged in bolstering his stake and aligning his financial interests directly with the bank’s performance. These actions effectively communicate confidence to the market and to other investors.
Elumelu’s strategic move to increase his stake aligns with UBA’s ongoing efforts to comply with a directive issued by the Central Bank of Nigeria (CBN). This directive mandates commercial banks with international licenses, including UBA, to raise their capital base to N500 billion. This regulatory requirement aims to strengthen the financial stability and resilience of Nigerian banks operating in the increasingly complex global financial ecosystem. By bolstering their capital reserves, banks are better positioned to withstand economic shocks and maintain the confidence of depositors and international stakeholders.
The timing of Elumelu’s investment coincides with UBA’s preparations to implement a capital raise aimed at meeting the CBN’s directive. The bank plans to raise N144.8 billion in the third quarter of 2025, adding to its existing capital base of N355.2 billion. This planned capital raise demonstrates UBA’s proactive approach to regulatory compliance and its commitment to maintaining a robust financial position. Elumelu’s substantial share purchase ahead of the capital raise signals his personal commitment to the initiative and serves as a vote of confidence in the bank’s ability to successfully execute the capital raise.
Elumelu’s proactive investment sends a positive signal to the market, demonstrating his strong belief in UBA’s potential for future growth and profitability. By increasing his ownership stake, Elumelu not only aligns his interests more closely with the bank’s performance but also provides reassurance to other investors considering participating in the upcoming capital raise. His actions serve as a powerful endorsement of UBA’s strategy and its ability to navigate the evolving regulatory landscape.
Furthermore, Elumelu’s commitment to UBA’s long-term success extends beyond mere financial investment. As Chairman, he has played a crucial role in shaping the bank’s strategic direction and overseeing its expansion across Africa. His vision and leadership have been instrumental in transforming UBA into a leading Pan-African financial institution with a presence in 20 African countries, as well as in the United Kingdom, France, and the United States. He has repeatedly emphasized his dedication to UBA’s continued growth and its ambition to become a truly global bank. Elumelu’s recent investment serves to solidify this commitment and demonstrates his belief in the long-term value creation potential of UBA. This move underscores his active involvement in navigating the bank through regulatory changes and capitalizing on opportunities within the African and global financial markets.
