Banks Race Ahead in Recapitalisation Drive

In what is shaping up to be a defining year for Nigeria's banking industry, several major deposit money banks (DMBs) have made significant strides in meeting the Central Bank of Nigeria's (CBN) recapitalisation deadline.

- BY NIYI JACOBS

Since the CBN's directive mandating higher minimum capital thresholds across the sector, the financial markets have witnessed a flurry of activity—from rights issues and public offers to private placements and strategic investments.

As the March 2026 deadline approaches, market analysts, investors, and regulators alike are keeping a close watch on the recapitalisation efforts of banks, especially those with national and international licences. This week, we spotlight the progress of selected banks and assess the momentum of Nigeria's banking recapitalisation campaign.

UBA: Rights Issue Oversubscribed, Elumelu Buys Big

United Bank for Africa (UBA) emerged among the frontrunners in the recapitalisation push following the conclusion of its highly successful rights issue. The bank's offer, which sought to raise N240 billion, was oversubscribed, attracting N251 billion from investors. Although only N240 billion could be taken up due to regulatory limits, the oversubscription signaled strong investor confidence in the bank's prospects.

UBA's new capital position now stands at N355.2 billion. The remaining N144.8 billion required to meet the N500 billion minimum capital threshold for banks with international authorisations will be pursued later this year, according to statements from the bank's leadership.

Notably, the bank's Chairman, Tony Elumelu, significantly boosted investor sentiment by acquiring a substantial 1,267,669,350 shares during the rights issue. At an average price of N34.64 per share, this purchase amounted to approximately N43.91 billion—an unequivocal vote of confidence in the bank's future and a strategic move that reinforces board-level commitment to the recapitalisation agenda.

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