UBA to Expand SMEs Lending, Invest in Digital Technology with N239.4bn Rights Issue

United Bank for Africa (UBA) Plc has announced plans to utilize the net proceeds of its ongoing N239.4 billion rights issue to enhance digital technology investments and expand business operations. The rights issue offers 6.84 billion shares at N35 per share to existing shareholders, providing an opportunity to reinforce UBA’s pan-African leadership and innovation. According to UBA’s Group Chairman, Tony Elumelu, this initiative aligns with the bank’s commitment to delivering long-term shareholder value and strengthening its position in the global financial landscape.

Elumelu revealed that the funds raised will support organic growth within Nigeria and internationally, focusing on the bank’s operations in markets such as France, the UK, the US, and the UAE. UBA also plans to expand its African footprint, leveraging its presence in 19 countries where subsidiaries contribute over 50% of group performance. Investments in small and medium enterprise (SME) lending and cutting-edge technology are central to this strategy, as the bank seeks to empower businesses and enhance its role in Africa’s economic transformation.

Additionally, UBA intends to deepen its digital capabilities, fostering efficiency and superior customer experiences. The bank will collaborate with telecommunications companies and fintechs to drive innovations in cross-border transactions, remittances, and intra-African trade. These efforts aim to position UBA as a dominant force in Africa’s financial services sector, enabling regional integration and prosperity while meeting regulatory capital requirements set by the Central Bank of Nigeria (CBN).