United Bank for Africa (UBA) Plc has delivered 375 per cent capital gains to investors in nearly five years, outperforming the average returns at the Nigerian stock market and the entire financial services sector.

Official data at the Nigerian stock market at the weekend indicated that investors in UBA have continued to earn an average annual return of about 75 per cent over some five years period. This highlights UBA’s impressive records as a high-yielding, inflation-hedging stock.

The trading report for the period between December 31, 2019 and December 06, 2024 showed that UBA recorded cumulative capital gain of 374.83 per cent during the period, representing average annual gain of 74.97 per cent.

This implies that an investor who had invested N500, 000 in the shares of UBA at the year’s opening price for 2020, now has a real, immediate market value of more than N2.374 million, due to accumulated capital gains. This excludes accrued cash dividends over the five-year period.

UBA, which pays dividends twice a year, is reputed as an investors’ friendly stock in terms of consistent and above-average cash dividend payment. It recently paid interim dividend of N2 per share on its first half 2024 results, the highest payout by any bank and one of the three highest yields in the entire stock market.

Such an investor who had invested N500, 000 at the 2020’s opening price would have received cash dividend of some N139, 860 as interim dividend for the 2024 business year, more than a quarter of his initial investment.

UBA is currently offering existing shareholders exclusive opportunities to increase their shareholdings in the bank with its ongoing N239.4 billion rights issue. The pan-African banking group is offering 6.84 billion ordinary shares of 50 kobo each to existing shareholders at N35 per share. The rights issue is pre-allotted on the basis of one new ordinary share of 50 kobo each to every five ordinary shares held as at November 05, 2024. The rights issue is scheduled to close on December 24, 2024.


Shareholders have hailed the decision on a rights issue as a deliberate incentive. In a survey, minority retail shareholders, who constitute nearly three-quarters of UBA’s nearly 280,000 shareholders, were excited about the rights issue, with most indicating possibility of applying for more than their pre-allotted shares. Extant rules at the Nigerian market allow shareholders to apply for more shares and also for the company to consider such requests for additional shares. Shareholders can also trade their rights at the stock market.


The three-digit capital gain highlights UBA as a major driver of the bullish trend at the Nigerian stock market, which has sustained five years of consecutive positive returns.

The benchmark index for the Nigerian stock market, The All Share Index (ASI)- the value-based common index that tracks all share prices at the Nigerian Exchange (NGX), has shown resilience over the past five years, closing on the top chart for the world’s best performing stock markets.


Average return for Nigerian equities in 2023 stood at 45.90 per cent, among the three world’s best-performing markets. ASI had posted average return of 19.98 per cent, 6.07 per cent and 50.03 per cent in 2022, 2021 and 2020 respectively.

Average year-to-date return for the ASI closed weekend at 31.34 per cent, with the market firmly on course for its fifth consecutive positive return. UBA is ahead of the market with average year-to-date return of 35.26 per cent, more than twice the average year-to-date return of 15.53 per cent for the banking sector.


UBA’s average capital gain so far this year is also considerably higher than several key indices at the stock market. The NGX 30 Index, which tracks the 30 largest quoted companies, closed weekend with average year-to-date return of 32.97 per cent.

The NGX Premium Index, which tracks a group of high-end companies with enhanced corporate governance and financial performance, closed with 30.43 per cent. UBA is listed among the premium stocks. The NGX Pension Index, which measures average return on stocks that meet the special investment criteria for pension funds, has recorded average gain of 33.95 per cent so far this year.


Nigeria’s benchmark interest rate- Monetary Policy Rate (MPR) stands at 27.25 per cent. Inflation rate stands at 33.88 per cent, according to the October 2024 Consumer Price Index (CPI) report by the National Bureau of Statistics (NBS).

UBA’s share price had opened 2020 at N7.15 per share, its closing price for December 31, 2019. It closed weekend at N33.95 per share, 35.26 per cent above its 2024’s opening price of N25.10 per share, its closing price for December 30, 2023.


Shareholders said UBA’s track records of solid financial performance, dividend policy and capital gain were competitive advantages for the pan-African banking group.

Longstanding UBA’s shareholder and Founder of Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, said UBA has proven to be dependable and resilient, attributes that have endeared the stock to all cadres of investors.

“The bank is doing well, so also are its subsidiaries. From whatever angle you look at it, UBA is a good buy. And I’m talking as a long-time shareholder. It is one bank that prioritises shareholders’ happiness. Go down the lane and check the bank’s dividend history and critical decisions when it comes to shareholders’ issues. It’s a bank one can rest on, so, I’m advising other shareholders to pick up their rights, it’s an opportunity. We are picking up ours and even asking for more,” Nwosu said.

The Governor of the Central Bank of Nigeria (CBN) Yemi Cardoso has acknowledged that Nigeria remains in a financial and economic crisis, a situation inherited by the current CBN administration.

Speaking at the 14th Annual Bankers’ Committee Retreat in Abuja, Cardoso explained that the role of the bankers’ committee remains critical towards addressing the challenge as well as reflating the economy.

The CBN boss said that the nation faces challenges in how to address poverty, rising inflation, infrastructure deficits, insecurity, and unemployment, among others.

He called on members of the bankers’ committee to reflect on the past year’s challenges and devise actionable tools to address them effectively.

On his part, the Special Adviser to the President on Economic Affairs Tope Fasua expressed concerns over excess charges by point of sale operators (PoS) while calling on the apex bank as well as deposit money banks to make cash available at all ATM points.

The three-day event brings together key players in the banking sector and has the theme “Contract and Commitment to National Development and Economic Growth”.

United Bank for Africa, through its Corporate Social Responsibility Arm, the UBA Foundation, on Monday, held its annual Garden Light-Up ceremony to kick-start the festive season.

The dazzling ceremony, held at the UBA head office in Lagos, brought together staff, customers, and well-wishers in a heart-warming display of joy, gratitude, and unity.

The Garden Light-Up, an annual tradition, represents UBA and its Foundation’s commitment to spreading cheer and fostering a sense of community during this special time of year.

With festive decorations, brilliant lights, fireworks and lively music, the event serves as a beacon of hope and celebration, setting the tone for the season of giving.

Speaking at the event, UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, emphasised the bank’s dedication towards creating memorable experiences and its appreciation for the efforts of staff and customers throughout the year.


L-R: CEO, UBA America, Sola Yomi Ajayi; Executive Director, Alex Alozie; Group Deputy MD, Chukwuma Nweke; GMD/CEO, Oliver Alawuba; CEO, UBA Africa, Abiola Bawuah; Executive Director, Ugo Nwaghodoh; and Regional Director, East Bank, Chioma Mang, during the Christmas Light Up.

Alawuba reiterated that the annual Lighting ceremony is a symbol of hope for the coming year, the future and all the goodness it will bring into people’s lives.

He said, “As we approach Christmas, a time of love, we remember the spirit of giving and community. I would like to express gratitude to each and every one of you. We are happy and grateful for all your sacrifices and contributions, especially during what has been a difficult year.

“I am particularly grateful to the board of UBA, led by our own Chairman, Tony Elumelu. I would also like to thank the entire executive management team – including Our ED/CEOs from America, and all our management team. We appreciate the work they have done so far.”

Alawuba explained that as the bank celebrates seventy-five years, it will continue to build a heritage that will last “This ceremony is a reflection of our belief in the importance of family, unity, and giving back to the communities we serve.

“Together, we have achieved remarkable milestones, and we look forward to an even brighter future. I therefore encourage each of you: when you go home, touch your neighbour’s life. By spreading kindness and light,” he stated.

The lighting ceremony was well-attended by UBA staff members and customers who were entertained with Christmas carols by the UBA Customer Fulfilment Centre’s choir. It ended with a guided tour around the UBA Foundation gardens on the Lagos Marina and fireworks.

Over the years, the UBA Foundation has been very active in creating sustainable development in its host communities and as part of its corporate social responsibility, the Foundation will be feeding tens of thousands of people across Africa during this festive season.

UBA Foundation, the CSR arm of the UBA Group, is committed to the socio-economic betterment of the communities in which the bank operates, focusing on development in the areas of Education, the Environment, Economic Empowerment and other Special projects.