In a significant show of confidence in the financial institution he chairs, Tony Elumelu, the prominent Nigerian billionaire and Chairman of the United Bank for Africa (UBA) Plc, has substantially increased his equity in the bank. Within a mere two-day period, Elumelu acquired shares valued at an impressive N43.91 billion, signaling a strategic move amidst the ongoing recapitalization efforts mandated by the Central Bank of Nigeria (CBN).
Details of this monumental transaction were made public through a regulatory filing submitted to the Nigerian Exchange Group (NGX) on Monday by Bili Odum, UBA's group company secretary. The filing revealed that the share acquisitions took place between May 29 and May 30.
During this period, Elumelu reportedly purchased a total of 1,267,669,350 shares at an average price of N34.64 per share, culminating in the N43.91 billion investment. The breakdown of these transactions shows specific purchases, including 50,000,000 shares at varying prices (N34.70, N34.65, N34.75, and N34.55) and an additional 17,669,350 shares at N34.70 per share.
This recent acquisition marks the second time in May that Elumelu has significantly invested in UBA shares. Earlier in the month, specifically on May 23, he had acquired 45,034,044 shares at N34.3 per share, a transaction valued at approximately N1.53 billion. These repeated investments underscore a clear pattern of increasing his ownership in the bank, a strategy he had openly communicated on May 25, 2024, when he announced his plans to further augment his stake.
The timing of these substantial share acquisitions is particularly noteworthy as UBA, along with other commercial banks holding international licenses, is actively preparing to meet the CBN's directive for an increased capital base. The regulatory requirement stipulates that these banks must boost their capital to N500 billion.
UBA's chairman, Tony Elumelu, had previously addressed this mandate on April 25, outlining the bank's strategy to raise N144.8 billion in the third quarter (Q3) of 2025. This capital injection is intended to supplement its existing capital base of N355.2 billion, bringing it in line with the CBN's new threshold. Elumelu has consistently expressed his assurance that the full capital raise will be successfully completed before the stipulated deadline set by the central bank.
Elumelu's substantial investment can be interpreted as a strong vote of confidence not only in UBA's future prospects but also in its ability to navigate the evolving regulatory landscape. Such significant insider buying often sends a positive signal to the market, indicating that leadership believes the company's shares are undervalued and that future growth is anticipated.
As UBA embarks on its recapitalization journey, the reinforced commitment from its chairman could play a pivotal role in bolstering investor confidence and ensuring a smooth transition to the new capital requirements.