United Bank for Africa Plc (UBA), a pan-African financial services group led by Nigerian businessman Tony Elumelu, has secured a $175 million facility from the Africa Development Bank (AfDB) Group — the package includes $100 million in long-term senior debt, $50 million in trade finance as medium-term senior debt, and a $25-million risk participation program.
The breakdown of the financial package highlights that the long-term senior debt is earmarked to enhance UBA’s capacity to finance crucial projects in Nigeria, with a focus on infrastructure, agriculture, and related value chains, as well as manufacturing, energy, and support for small and medium-sized enterprises (SMEs).
The trade finance senior debt aims to provide countercyclical dollar liquidity, supporting SMEs and local corporates involved in export-import activities in the short to medium term.
UBA CEO Oliver Alawuba enthusiastic about facility to support key sectors in Nigerian economy
UBA Group Managing Director and CEO Oliver Alawuba expressed enthusiasm about the facility, stating, “This facility will further deepen the bank’s support to the critical sectors of the Nigerian economy, especially women-owned businesses, and SMEs, which we consider as the engine of any country’s economic development.”
The financial package aligns with the African Development Bank’s priorities, focusing on key areas such as Light up and Power Africa, Feed Africa, Integrate Africa, and Industrialize Africa.
According to AfDB Group Director General for Nigeria Lamin Barrow, the intervention will address unmet demand for trade finance in Nigeria and Africa, providing medium-term finance to support exports and the importation of intermediate goods required to sustain vital economic sectors.
UBA dominates African financial landscape with $570 million profit surge in 2023
UBA, a leading player in Nigeria’s financial services sector, holds a top position in Africa’s financial landscape. The bank’s partnership with the African Continental Free Trade Area (AfCFTA) underscores its commitment to empowering African businesses.
UBA’s visionary approach to business has positioned the bank as a key player in driving economic growth and fostering financial inclusion across Africa. Building on its previous financial performance, UBA, a leading player in Nigeria’s financial services sector, has reported a remarkable profit of $570 million in the nine-month period of its 2023 fiscal year.
The significant growth in profit is linked to the revaluation of investment securities in naira terms, following the unification of the Naira in the second quarter of 2023, resulting in net trading and foreign exchange income of N450.25 billion ($571.4 million) during the period under review.
