Chairman of United Bank for Africa (UBA), Tony Elumelu making his presentation at the 21st Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN) in Abuja recently
By Chukwudi Iwuchukwu
Earlier this week, the news broke that Nigeria’s finest businessman, Tony Elumelu who also doubled as UBA Group chairman, dropped 44 billion naira to buy 1.27 billion shares of the bank he oversees.
The 44 billion investment was done through the vehicle of his family-owned investment company, Heir Holdings.
Eyebrows were raised immediately when the news broke.
A lot of cynics and sceptics wondered if UBA Bank is healthy enough that warranted the huge investment by the chairman.
As someone who understands finance and follows the money, let me break down what it is and why the investment was made.
1) UBA, a pan-African bank, is healthy and not close to distress or bankruptcy.
You dont need to believe me; rather, let’s examine their last financial results.
Speaking at the bank’s 65th Annual General Meeting in Abuja, UBA Chairman Tony Elumelu said the group delivered a profit after tax of ₦767 billion and gross earnings of ₦3.2 trillion in 2024—its strongest performance to date.
The bank also saw total deposits surge 42 per cent year-on-year to ₦24.6 trillion, while its loan portfolio expanded 35 per cent to ₦7.5 trillion, reflecting increased support for businesses and economies across Africa.
For Financial Year 2024, UBA paid out N171 billion as total dividends to its shareholders, representing a 79 per cent increase from the N95.8 billion paid for 2023.
So you will agree with me that a bank that made over 700 billion in profit and one which paid over 171 billion to shareholders in the form of dividends is healthy and not in any way struggling or distressed.
2) Why then is Elumelu betting on the future of UBA?
The answer is simple to understand.
This aggressive accumulation of 1.27 billion shares acquired in just two days, signals much more than investor confidence. It is a statement of intent by Elumelu, who is not only the bank’s chairman but also its single largest shareholder.
Before now, Elumelu was the largest shareholder of UBA , as he controlled a 7% shareholding of the bank through direct and indirect holdings.
Last year, CBN directed Nigerian banks to raise their capital base.
UBA was asked to raise N500 billion as a tier- one bank.
Already the bank has raised ₦240 billion and is planning to raise an additional ₦144.8 billion ($90.2 million) in additional capital this year.
13 years ago, I used to be a Law student at Nigerian Law School, Bwari Abuja.
One of my favourite teachers was a man called Prof Samuel Osamolu
He taught us corporate law, and one of the things he taught back then was that when a company is raising additional capital from the public, the fear of dilution is real, as the new investors can take over the company if they inject more capital than the existing shareholders.
So by acquiring shares worth 44 billion, Mr Elumelu is only tightening his grip and consolidating his influence on UBA so that new investors who will inject capital during the capital raise won’t dilute his shares and thereby take over his baby and his crown jewel in his portfolio from him because of dilution.
It is that simple to understand.
If na you? Will you let an o third party investor to come and take over your baby because the bank is raising additional capital to meet CBN regulatory requirements?
With this move, Mr Elumelu’s position as the largest shareholder of UBA is not under threat, signalling Elumelu’s determination to maintain a steady influence during a time of significant changes in Nigeria’s banking industry.
Elumelu’s latest share acquisition is more than just a show of confidence—it’s a calculated step to maintain his influence as the bank prepares to issue more shares. As new investors come on board, there’s a risk of diluting existing stakes.
By increasing his holdings now, Elumelu ensures he remains a central voice in shaping UBA’s direction, especially at a time when major decisions around capital and expansion lie ahead.
A masterclass in leverage and execution.
3) But beyond the numbers, the move underscores his continued faith in UBA’s long-term potential. With operations in more than 20 African countries and growing international links in cities like London, Paris, and Dubai—and now with an eye on Saudi Arabia—Elumelu is clearly betting that UBA’s next chapter will be even bigger.
It also reflects something deeper: his long-standing belief in building Africa from within.
Through Heirs Holdings and the Tony Elumelu Foundation, he’s been a vocal supporter of African-led growth, pushing for local entrepreneurship, stronger private-sector leadership, and homegrown capital. His growing investment in UBA is part business, part conviction, a bet not just on a bank but on the continent’s ability to shape its own economic future.
4) With this new investment, Elumelu’s stake at UBA is currently worth in UBA above $80 million, and his investment in UBA has been a profitable one.
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 ending 2024.
With the incresed stake now, he tends to make more from his crown jewel.
5) On a personal note, today made it exactly one year that Tony Elumelu extended an invitation to small me to see him at his Ikoyi office.
It has been one year, and my life is no longer the same.
A reminder that you can see far when you stand on the shoulders of the great and when you show up everyday.
For this, I’m forever grateful
*Iwuchukwu wrote in from Lagos
