DELVE INTO AFRICAN WEALTH
DON'T MISS A BEAT
Subscribe now
Skip to content

Why Tony Elumelu is betting big on UBA with a stake worth over $80 million

In Elumelu’s world, control is currency, and UBA is the crown jewel he’s determined to protect.

Tony Elumelu

Table of Contents


Key Points

  • Tony Elumelu boosted his UBA stake by $27.7 million, becoming the bank’s largest shareholder with 3.81 billion shares, ensuring strong control.
  • UBA is raising capital to meet Nigeria’s new regulatory requirement, with Elumelu protecting his stake against dilution ahead of more share issuances.
  • Elumelu’s move reflects his long-term faith in UBA’s growth and Africa’s economic future, prioritizing control amid broader financial commitments and market risks.

Nigerian businessman Tony Elumelu is deepening his bet on United Bank for Africa (UBA), one of the continent’s largest financial institutions. In a move that highlights his long-term commitment to the bank and a calculated assertion of control, Elumelu recently acquired a fresh tranche of shares worth over $27 million, catapulting his stake in UBA above $80 million.

This aggressive accumulation, 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.

The 26 transactions, all executed between May 29 and 30 on the floor of the Nigerian Exchange (NGX), were conducted at an average price of N34.64 ($0.022) per share. Altogether, the acquisition amounted to N44 billion ($27.7 million), signaling Elumelu’s determination to maintain a steady influence during a time of significant changes in Nigeria’s banking industry.

Elumelu raises UBA shares to protect influence

Elumelu's strengthened position in UBA, now totaling 3.81 billion shares, comes as Nigerian banks face significant regulatory pressure to raise their capital bases. The Central Bank of Nigeria (CBN) has directed banks with international licenses to raise their capital base to at least N500 billion ($315 million), a sweeping move aimed at strengthening the financial system and preparing local lenders for global competition.

UBA has already made significant headway. The bank completed a rights issue in late 2024 that raised N239.4 billion ($143.6 million), lifting its capital base to N355.2 billion ($224.4 million). But the job isn’t finished yet. To hit the new target, UBA plans to raise an additional N144.8 billion ($92 million) in the third quarter of 2025.

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.

Elumelu’s UBA stake hits $83 million

The timing of the purchase is also telling. UBA shares currently trade at N34.5 ($0.218), putting the value of Elumelu’s stake at N131.45 billion ($83 million). That places him among the wealthiest banking investors on the continent, part of a small group whose fortunes are closely tied to the performance of the banks they help lead.

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.

Control trumps diversification for Elumelu

However, the move is not without risk. Elumelu is carrying heavy financial commitments, reportedly over $1 billion, spread across a wide range of businesses, from power and oil to healthcare and real estate. Pouring more capital into a single asset class, especially in the middle of Nigeria’s economic uncertainty and rising inflation, might raise concerns. Yet to those familiar with his investment pattern, the play aligns with a long-standing model: commit deeply, leverage networks, and position for long-term control.

More than a power grab or portfolio diversification, this $27 million acquisition reflects something deeper, Elumelu’s belief in stability and staying power at a bank he’s helped reshape from a local lender into a major player across Africa. In his world, control is currency, and UBA is the crown jewel he’s determined to protect. As UBA pushes forward with its capital raise to meet regulatory expectations, the man at its helm is doubling down, ensuring that no matter how the shareholder base evolves, his influence will remain a defining constant. 

Latest