United Bank for Africa Plc has issued 6,839,884,274 ordinary shares of 50 kobo each at N35 per share in a rights issue to raise N239.4bn in a bid to meet the fresh capital requirements of the Central Bank of Nigeria.

The rights issue which opened on Friday (today) allows existing shareholders to purchase one new ordinary share for every five existing ordinary shares held by shareholders as of November 05, 2024.

In late March, the CBN announced an upward review of the minimum capital requirement for banks in the country.

In a letter to the shareholders informing them of the rights issue, the Group Chairman of United Bank for Africa, Tony Elumelu, noted that following the resolution of the Group’s shareholders at the Annual General Meeting held in May 2024, authorising the establishment of the N400bn Equity Shelf Programme, UBA will embark on a Rights Issue, as the first step in its broader capital raising programme.

“UBA’s Rights Issue aims to raise N239.4bn, through the issuance of new ordinary shares to our shareholders. The primary objective of this rights Issue is to further strengthen our capacity to take advantage of growth opportunities and sustain our leadership in the banking industry,” Elumelu said in the letter.

On the use of proceeds, Elumelu noted that, beyond regulatory compliance, the funds will expand the Group’s lending capacity, invest in digital infrastructure, support sustainable business practices, and expand the group’s African operations.

Elumelu also highlighted how UBA is driving economic growth across Africa, saying “Our historic partnership with the Africa Continental Free Trade Area Secretariat, where UBA pledged up to $6bn in financing over the next three years to support eligible SMEs across Africa underscores our commitment to fostering economic development.”

It was revealed that application for the provisional allotment of the Rights to the new ordinary Shares will be made exclusively through the NGX e-offer portal, during the offer period, while existing shareholders may also apply for additional shares above their provisional allotment as described in the Provisional Allotment Letter. Shareholders who are customers of the Bank are also encouraged to access their Rights through UBA’s internet banking and mobile banking channels.

At the end of the third quarter, the gross earnings of UBA appreciated by 83.2 per cent year-on-year to N2.39tn from N1.31tn in the same period of 2023. Its profit before tax went up by 20.2 per cent to N603.48bn from N502.09bn in Q3 2023, while profit after tax also rose by 16.9 per cent to N525.31bn from N449.26bn recorded a year earlier.

The lender’s total assets rose to N31.80tn, representing a 54.0 per cent increase over the N20.65tn recorded at the end of December 2023.

In the 2023/2024 report year, UBA won ‘Bank of the Year’ awards in eight of its subsidiaries – Cameroon, Chad, Ghana, Cote d’Ivoire, Mozambique, Republic of Congo; Sierra Leone; Tanzania, as well as the Regional Award for Africa and in 2024 has won World Best Frontier Markets Bank and Best SME Bank Africa.

UBA Plc offers banking services to more than 45 million customers, across 1,000 business offices and customer touch points in 20 African countries.

The Federal Government on Thursday approved the Medium-Term Expenditure Framework for 2025 – 2027 and Fiscal Strategy Paper.

According to the MTEF, the proposed 2025 budget size is N47.9tn, with new borrowings of N9.22tn, the Minister of the Budget and Economic Planning, Abubakar Bagudu, told State House Correspondents after this week’s Federal Executive Council meeting at Aso Rock Villa, Abuja.

Bagudu announced, “The Federal Executive Council approved a memorandum by the Ministry of Budget and Economic Planning, which was presented by the Director-General of the Budget Office [Mr Tanimu Yakubu] on the Medium-Term Expenditure Framework and Fiscal Strategy Paper for 2025 – 2027.”

The disclosure comes after weeks of delay as President Bola Tinubu prepares to present the 2025 Appropriation Bill to the National Assembly, his second since assuming office in May 2023.

The MTEF, a critical tool the FG uses to outline its fiscal strategy over three years, establishes macroeconomic assumptions and targets that guide national budgeting. It also includes projections of key economic variables such as oil prices, exchange rates, inflation, and growth rates.

For the 2025-2027 period, the MTEF sets out parameters, including an oil price benchmark of $75 per barrel, an oil production target of 2.06 million barrels per day, an exchange rate of N1,400 to the US dollar, and a GDP growth rate of 4.6 per cent.

The FG’s projected aggregate expenditure for 2025 is N47.9tn, with planned borrowing of N13.8tn, equating to 3.87 per cent of GDP.

The minister explained, “For the 2025-2027 period, the MTEF sets out parameters including an oil price benchmark of $75 per barrel for 2025, oil production of 2.06 million barrels a day, as well as an exchange rate of N1400 to the dollar and GDP growth of 4.6 per cent.

“It is expected that for 2025, the Federal Government’s budget estimate, the aggregate expenditure is estimated at N47tn, and this includes a borrowing of N13.8tn, which is 3.87 per cent of the estimated GDP.

“The budget size that was approved for presentation to the National Assembly in the MTEF is N47.9tn with new borrowings of N9.22tn to finance the budget deficit in 2025 as well as noting that we need to sustain the commendable market deregulation of petroleum prices and exchange rate, and to compel the Nigerian National Petroleum Corporation Limited to lower its oil and gas production cost significantly, and even to consider the need to amend the relevant sections of the Petroleum Industry Act 2021 to address the significant risk to Federation.”

“The figures were only for 2025, even though there are projections for 2026 and 2027 in the document, which have different figures for the oil price benchmark for the two years,” he added.

Bagudu said Thursday’s memorandum sought the council’s endorsement of the MTEF for submission to the National Assembly, a requirement under the Fiscal Responsibility Act 2007.

The MTEF begins with a macroeconomic overview. It notes that despite global economic challenges, the Nigerian economy is on a positive trajectory, showing two consecutive quarters of growth, with a 3.19 per cent increase in real terms in the second quarter of 2024, the budget minister explained.

However, he acknowledged the need to combat inflation, strengthen economic resilience, support vulnerable populations, bolster high-employment sectors, improve the business climate, and effectively implement youth and social investment programmes.

He revealed that the framework, alongside the FSP, also includes a review of the 2024 budget implementation, highlighting progress in revenue collection and expenditure management, though some targets have fallen short. The report also shows that non-oil revenue streams outperform expectations, Bagudu said.

On the 2024 budget performance, he said, “Actual spending as of August 2024 ending was N16.98tn as against the prorated spending target of N23.37tn at the end.

“Of this amount, N7.41tn was for debt service, and N3.7tn for personnel costs including pension. Further, N3.65tn has been released for capital projects. Most of the delays for capital project release have been earlier legacy issues, in the sense that the new procedure for upload requires a lot of capacity building and delayed uploads.”

N28.75tn was earmarked for the 2024 budget. However, it grew to N35.6tn after amendments by the National Assembly added N6.2tn to the pile.

Responding to queries from journalists, the budget minister said the MTEF would reach the National Assembly on Monday, November 18.

“We are submitting it, I believe, tomorrow [Friday] or, at the latest, on Monday. The office of Mr President will forward the Medium-Term Expenditure Framework and Fiscal Strategy Paper to the National Assembly,” he stated.

The minister also argued that despite the late approval for the MTEF, the FG will maintain the January-December budget implementation cycle.

He affirmed, “We are confident because we have built a respectable relationship with the National Assembly. We have narrowed the areas of misunderstanding. And because of that mutual respect, Mr President is very transparent with the National Assembly leadership. And the National Assembly appreciates that openness.

“He [President] has instructed all his teams to ensure we cooperate with the National Assembly. For instance, the team led by the Coordinating Minister of the Economy has been mandated not only to wait but also to engage the National Assembly and answer all questions at the committee hearings.

“So, I’m confident because of this combination of factors. With this cooperation, I believe we’ll see an expeditious consideration, and immediately we are aware of the approval, we will finalise the budget because the MTEF precedes the budget preparation.”

Credit: PUNCH

The military high command, on Thursday, paid last respect to the late Chief of Army Staff, Lt Gen Taoreed Lagbaja, who died on Tuesday, November 5, after a brief illness.

Lagbja’s corpse departed for Abuja on Thursday morning shortly after top military personnel and other dignitaries, including the Deputy Governor of Lagos State, Dr Obafemi Hamzat, and other dignitaries paid their last respects in his honour at the Air Force wing of the Murtala Muhammed Airport in Ikeja.

The body, which was brought from a mortuary in the state, arrived at the Nigerian Air Force wing in a cream-coloured SUV hearse at exactly 9 am.

It was thereafter received by soldiers of the Guards Brigade who held a military parade on the strip of the Air Force wing.

At exactly 10 am, the body was taken out of the hearse and placed on a trolley as top military officials numbering six slowly moved it into the C-130H NAF aircraft at exactly 10:32 am.

The corpse was airlifted by the 301 heavy airlift crew at 11:45 am.

At the Lagos end, the ceremony lasted for close to two hours and was also attended by representatives of the military wives association and some members of the deceased’s family.

His remains later arrived at the Nnamdi Azikiwe International Airport in Abuja at exactly 12:16 pm, in preparation for his final interment.

Upon arrival at the Abuja airport, a guard of honour was accorded the body, with top military officers on the ground to receive it.

The deceased, according to the Director of Army Public Relations, Maj Gen Onyema Nwachukwu, would be buried at the National Military Cemetery in Abuja today (Friday).

A service of songs was held in his honour in Abuja, on Thursday.

Lagbaja only person to command a battalion twice – Coursemate

The Commander of Training and Doctrine Command, Maj Gen Kelvin Aligbe, praised the late Chief of Army Staff, Lt Gen Lagbaja, as an extraordinary military leader.

He said little wonder he was the only officer to command a battalion twice.

Aligbe spoke on behalf of the 39 Regular Course at the Songs of Service ceremony.

Reflecting on their shared journey, Aligbe recalled their commissioning as part of the 39 Regular Course on September 12, 1987, where 199 officer cadets began their training to join the armed forces.

He added that from the beginning, Lagbaja stood out as a born leader.

He said, “On the 12th of September, 1987, I, then officer cadet, Taoreed Lagbaja, and 199 of us assembled for training as members of the 39 regular corps.

“We trained and were commissioned together into the armed forces. Right from time, he led with no doubt. He was, first and foremost, an operational commander.

“Little wonder that while commands in the services are sometimes difficult to come by, he had the privilege of being the only person, if my memory serves me right, to have commanded a battalion at two different times.

“He commanded brigades at two different times. He was a general commanding at two different times.”

He urged the military community to embody the values of service and dedication that Lagbaja held dear.

Aligbe said, “He was primed for the operation that he led, through which, even though they say soldiers don’t die, his memories fade away.

“The only way I and my course mates and the other members of the armed forces, officers and soldiers that he left behind can honour his memory truly is to continue what he believed in. He believed in the indivisibility of Nigeria.

“He believed in service. He gave everything at the risk of sounding immodest. I don’t know if we gave him enough.”

Speaking on behalf of the Nigerian Army Officers’ Wives Association, Bilikisu Ibrahim described Lagabaja as a man of faith whose spirit was rooted in devotion and conviction.

She said, “To those he served, he was a pillar of protection, an unwavering beacon amidst storms of insanity and threats.

“But beyond our soldiers was a man of faith, a spirit rooted in devotion and conviction. In the trials of duty, he held fast to his spirituality, finding in prayers the fortitude that guided him through the darkest battles.

“His beliefs were his anchor, a quiet force that strengthened him as he led a sacrifice for the nation he loved.

“His life was not only a mission of arms but of the heart. A journey where faith met duty and courage met compassion. As we gather hands held in solace and grief, we recall the gentleness in his smile, the depth of his wisdom, the vision that he led armies and inspired peace.”

The Global President of St Charles Old Boys Association, Tade Adekunle, who read a poem written by a Senior Secondary School Two student of the school, described Lagabaja as an immortal hero.

He said, “The immortal hero, a militant heart, now still and cold. The nation mourns, both young and old. A warrior’s soul, a poet’s might. On the field of faith, you shone so bright.

“With every piece of bread, you shield our motherland. Leading brave men with a steadfast hand, both now empty. Blade of honour now laid down.

“Its cannon’s cry extinguished, yet legend remains. A warrior’s pulse now stilled in time. On the altar of freedom, you laid your life, your sacrifice, our beacon of hope.”

In a statement, President Bola Tinubu extended his heartfelt condolences to the late army chief’s family and the Nigerian Armed Forces.

Born on February 28, 1968, Lt Gen Lagbaja served as Chief of Army Staff for one year and four months, following his appointment by Tinubu in June 2023.

His distinguished military career began in 1987 at the Nigerian Defence Academy, and he was commissioned as a Second Lieutenant in the Nigerian Infantry Corps on September 19, 1992.

Throughout his service, Lagbaja commanded operations that were vital to national security, including Operation ZAKI in Benue, Lafiya Dole in Borno, Udoka in the South East, and Operation Forest Sanity in Kaduna and Niger states.

An alumnus of the United States Army War College, he held a Master’s degree in Strategic Studies, underscoring his commitment to military excellence and leadership.

Lagbaja is survived by his wife, Mariya, and their two children.