The United Bank of Africa (UBA) has solidified its position as a leading financial institution, not just in Nigeria, but across the African continent and beyond.

With its tagline “One Brand, Global Influence,” the financial institution has continued to demonstrate a commitment to providing innovative financial solutions to individuals and businesses alike.

For 75 years, the Pan-African bank has transformed from a mustard seed to a thriving global powerhouse, creating a strong footprint in 24 Global locations while igniting success.

With a presence in 20 African countries and four global centres: London, New York, Paris, and Dubai, UBA has established itself as a truly global financial institution. Its expansive network ensures that it can meet the needs of its customers wherever they are, delivering world-class banking services with a local touch.

• Connecting Businesses in Africa

UBA is connecting people and businesses across Africa through retail, commercial, and corporate banking, innovative cross-border payments and remittances, trade finance, and ancillary banking services. The bank recognises the significance of micro, small and medium-scale enterprises (MSMEs) to the development of the African economy. Hence, it entered a $6 billion agreement with the African Continental Free Trade Agreement (AfCFTA) to show our commitment to the development of the MSMEs’ sector across the continent. Under this agreement, the bank provides businesses with the technical and financial solutions needed to succeed.

With this agreement, the bank promotes the development of MSMEs operating in four sectors under the first phase of the partnership which are largely import-dependent by providing technical and financing solutions for intra-African/domestic alternatives. These economic sectors are Agro-processing, Automotive, pharmaceuticals, Transport and Logistics.

One of the key initiatives of the AfCFTA is to improve access to finance and markets for MSMEs to encourage their growth and contribution to the socio-economic development of Africa.

UBA’s Group Managing Director, Oliver Alawuba, pointed out that the bank is focused on how to partner to move Africa forward particularly as it concerns MSMEs and women empowerment.

“We believe that African women can be more empowered to do more for African development and UBA is in the forefront of these initiatives. African trade is our key area of strength. Our presence in 20 African countries is mainly to drive inter-African trade.

“Our partnership with AfCFTA is also to drive inter-African trade. Inter-African trade is important. Africa needs to trade more with each other and that will further improve economic development across the continent

“I believe that this is the time for UBA, working with other corporate organisations and partners to develop the resources and opportunities that are available in the continent. We are today present in 20 African countries and four other countries outside Africa. Yes, Africa has tremendous opportunities. What we are saying is that we need to have partners, and institutions that will be able to harness these opportunities for the people. UBA is well-positioned to facilitate business within Africa and the rest of the world. That is why we are here in this conference,” he added.

Deputy Managing Director of UBA, Muyiwa Akinyemi, who signed the agreement on behalf of the bank, noted that being Africa’s global bank, UBA remains committed to supporting the growth/development of SMEs across Africa. This is in line with our strategic focus on the SME segment being a catalyst to the economic development of Africa.

Muyiwa further said, “ Under this partnership, UBA will go beyond just financing to provide non-financial services to these SMEs to develop the capacity for growth across the 20 African countries that we are present and build sustainable business practices. We shall also be leveraging technology to deliver our financing activities to the beneficiaries and this platform provides us with a unique opportunity to stimulate the development of the continent as Africa’s Global Bank.”

Also, UBA’s presence across four regions enables it to bring global expertise to local markets, driving economic growth and development. UBA’s business strategy is built on being the bank of choice for businesses across the African continent.

Using its extensive spread across the continent, it facilitates trade and also acts as the pivot for the inflow of investment capital. UBA provides corporate, commercial, SME, consumer, and personal (retail) banking services to more than 45 million customers, served through diverse channels: over 1,000 business offices and customer touch points with 2,669 ATMs, 87,223 PoS, and robust online banking services. Additionally, UBA offers pension custody and related services.

The bank has proven expertise and capacity in key sectors of economies across Africa, especially in oil and gas, infrastructure finance, agric, and commodity/export, and this positions the bank as a preferred partner for structured solutions to key governments and corporates operating in/into Africa. The Pan-African bank focuses on supporting people and businesses to succeed across Africa, Europe, Asia, and North America. Through its diverse range of financial products and services, it helps people fulfil their goals and enable businesses to prosper.

For UBA, serving customers is not just about profit as it strives to be with its customers every step of the way in their journey. Its overall strategic goal in its approach to business is defined by its strong desire to be the bank of choice for individuals and businesses across Africa and globally.

• Global Brand, Digital Expansion

The UBA brand is built on the foundation of three core values that guide everything we do; Enterprise, Excellence, and Execution. It fosters a culture of innovation and excellence, driving growth through strategic initiatives and exceptional service. By transforming ideas into actionable solutions, UBA consistently delivers high-quality results on time, setting the highest standards across all our endeavors.

Additionally, UBA’s extensive network of branches and ATMs across Africa has been instrumental in driving financial inclusion. By expanding its reach to underserved communities, the bank has empowered individuals and businesses to participate in the formal economy. This strategic expansion has also facilitated cross-border trade and investment, fostering economic growth and development.

UBA has been at the forefront of technological advancements in the banking industry. The bank’s digital platforms, including mobile banking and online banking, have made it easier for customers to access their accounts and conduct transactions. Additionally, UBA has introduced innovative products and services tailored to meet the specific needs of different customer segments.

• Corporate Social Responsibility

Beyond its core business, UBA has demonstrated a strong commitment to corporate social responsibility. The bank has undertaken various initiatives to support education, healthcare, and community development. By investing in the well-being of the communities it serves, UBA has reinforced its reputation as a responsible and ethical institution.

• Financial Performance

UBA has been experiencing a significant surge in its share price, primarily driven by the positive financial results it has consistently delivered. UBA shares closed on Thursday, September 19, 2024, at N24.65 per share, compared with the N16.80 per share it was as of September 20, 2023. Africa’s global bank is no doubt a growth and value stock combined making it the best bank to own for investors which would provide the necessary upside (Value) as well as the earnings (Growth) that would continue to underpin its stock price rise.

UBA’s growth has been accelerating in recent years as the vision of a pan-Africa lender begins to increasingly crystalise. This is driven largely by its financial performance which has continued to beat analysts’ expectations.

For instance, its audited financial results for the full year ended December 31, 2023, showed exceptional and impressive performance across all its major indicators. The bank recorded an impressive leap in gross earnings, as it grew from N853.2 billion recorded at the end of 2022 to close at N2.08 trillion; representing a strong 143 percent growth. The bank’s total assets also rose remarkably by 90.22 percent, doubling the N10 trillion mark to close at N20.65 trillion in December 2023; up from N10.86 trillion in 2022. This leap was a significant achievement and milestone in the history of the financial powerhouse.

Despite the highly challenging global economic and business environment, UBA in 2023, recorded a laudable profit before tax, with an exponential growth of 277 percent, to close the year under review at N758 billion, rising from N201 billion recorded at the end of the 2022 financial year; while profit after tax (PAT) grew by 257 percent from N170 billion in 2022, to N608 billion in the year under consideration.

Consequently, UBA Group Shareholders’ Funds rose from N922 billion as of December 2022 to close the 2023 financial year at N2.0tn, achieving an impressive growth of 120.2 percent compared to the prior year. Also, in the year under consideration, UBA Group’s cost-to-income ratio dropped from 59.2 percent in 2022, to 37.2 percent pointing to the Group’s improving efficiency.

In fulfillment of its promise to shareholders at its last Annual General Meeting, the bank offered a final dividend of N2.30 kobo for every ordinary share of 50 kobo, for the financial year ended December 31, 2023. Also worthy of note, UBA in the review year, recorded a 61.3 percent growth in loans to customers, moving up to N5.5 trillion in 2023, whilst customer deposits improved by 90.31 percent to N14.9 trillion, compared to N7.8 trillion recorded in the corresponding period of 2022, reflecting increased customer confidence, enhanced customer experience, successes from the ongoing business transformation programme and the deepening of its retail banking franchise.

The positive trend continued in the first quarter (Q1) of 2024. The UBA Group’s results as of March 31, 2024, showed outstanding year-on-year increases: Gross Earnings rose by 110 percent, from N271.1 billion to N570.2 billion; Interest Income grew by 130 percent, to N440.7 billion. Operating Income increased by 115 percent, from N175.7 billion in 2023 to N378.59 billion.

Further consolidating the record performance delivered in the Group’s 2023 full-year audited financials, UBA again saw profit before tax rising significantly by 155 percent from N61.7 billion in Q1 2023 to N156.34 billion in Q1 2024; while profit after tax jumped from N53.5 billion to N142.5 billion, representing an impressive rise of 165 percent year-on-year.

The bank’s impressive performance has attracted increased investor interest, boosting demand for its shares. These positive results showcase UBA’s strong financial health, robust growth prospects, and effective management strategies.

Key factors contributing to the stock price appreciation include the bank’s consistent increase in revenue and profitability, coupled with its expansion into new markets.

Group Chairman, UBA, Mr. Tony Elumelu, appealed to shareholders to participate fully and re-invest their dividends in the bank’s recapitalisation drive which is set to commence in the coming days, saying this would ensure that they continue to enjoy even higher returns from their investments.

He said, “I call on you shareholders to re-invest a substantial part of your dividends in our rights issues which will be announced soon, as we will be giving you the first opportunity to own a share in all the countries where we operate, I am advising shareholders, as you get your dividends, reinvest a significant part of it. As for my board members and I, we would be investing 100% of the dividends we get, because If we don’t do so, it means we would be leaving food on the table for others who did not labour for it,” Elumelu stated.

As the bank continues to deliver positive results and execute its strategic plans, it is expected to maintain its upward momentum and attract further investor interest. In conclusion, UBA has no doubt emerged as a powerful force in the global banking landscape. With its strong Pan-African footprint, innovative financial solutions, and commitment to corporate social responsibility, UBA is well-positioned to continue its growth and success in the years to come.

An 80-year-old grandfather, Pa Aremu Shojobi, was arrested by National Drug Law Enforcement Agency operatives with 14 kilograms of cannabis.

According to the agency’s spokesman, Femi Babafemi, Shojobi admitted to selling illicit drugs for 25 years.

The agency stated that the suspect got the drugs from Benin Republic. Babafemi said, “Operatives of the Lagos State Strategic Command of the Agency on Friday, September 20, arrested an 80-year-old grandfather, Pa Aremu Shojobi, with 14 kilograms of cannabis at his home in the Iyana Ipaja area of the state.

In his statement, the octogenarian claimed he had been in the business of selling illicit drugs for 25 years. He further claimed he got his supplies from the Benin Republic and sold to his customers from his residence between 7 am and 10 pm every day.”

Babafemi also said a total of 25,000,000.00 pills of tapentadol, an opioid three times stronger than tramadol and 350,000 bottles of codeine-based syrup, were recovered at the Tin Can port complex in Lagos.

He added that the seizures were made on September 17 and 20, 2024, from three containers that had been on the watchlist of the agency following processed intelligence.

“As a result, the NDLEA requested 100% joint examination of the shipments with men of the Nigeria Customs Service and other security agencies. The 25 million pills of tapentadol have an estimated street value of N13,725,000,000.00 while the codeine consignment has an estimated street value of N2,450,000,000.00, bringing the total value of the seizures to N16,175,000,000.00.

“The tapentadol consignment packed in 500 cartons was discovered in one of the containers on Tuesday, September 17, while another container examined the same day contained 175,000 bottles of Barcadin cough syrup with codeine packed in 875 cartons. The third container containing 175,000 bottles of CSC cough syrup with codeine was examined on Friday, September 20,” the statement added.

Similarly, Babafemi said the NDLEA operatives in Lagos on September 18 raided the two homes of a community leader and Sarkin Yamma of Badagry West LCDA, Alhaji Bashir Mohammed Talba, where 226kg of cannabis was recovered from his two wives and son.

He added that though Alhaji Talba is currently at large, a search of his house in the Ashipa area of Seme Badagry led to the recovery of 93 compressed blocks of cannabis sativa weighing 57.6kg from his first wife, Asma’u Bashiru, 35, and son, Sadat Bashiru, 22, while another search of his house at the Aketegbo area of Seme Badagry led to the seizure of 302 compressed blocks of cannabis weighing 168.6kg from his second wife, Hauwa Bashir, 42.

“No less than 720 blocks of Arizona, a strain of cannabis weighing 390kg, were also recovered from a Mitsubishi delivery van marked MUS 720 XH at the Ojo area of Lagos on Monday, September 16,” he added.

At the Mallam Aminu Kano International Airport, Kano, Babafemi said the NDLEA operatives on September 15 arrested a 38-year-old drug mule, Okafor Ifeanyi Anthony, while attempting to board a Qatar Airlines flight to Iran via Doha with 76 wraps of cocaine in his stomach.

“After three days of excretion observation, Okafor excreted the 76 pellets of the ingested cocaine weighing 1.267kg.

In Kogi State, the NDLEA officers on patrol along the Okene-Lokoja-Abuja Expressway on Tuesday, September 17, recovered 700,000 pills of exol-5 coming from Lagos for distribution in Kano and Kaduna states, while a suspect, Udemefuna Chibuike, 23, was arrested by operatives on Friday, September 20, along the Mokwa-Jebba Road, Niger State, in possession of 49,000 tablets of tramadol, 20,000 tablets of diazepam, 100 ampoules of tramadol injection and 50 bottles of cough syrup with codeine,” Babafemi added.

The statement continued, “A total of 451 blocks of cannabis weighing 213kg were intercepted along the Azikiwe Road, Port Harcourt, Rivers State on Wednesday, September 18, by the NDLEA officers who apprehended a suspect, Ogochukwu Paul, 33, conveying the consignment to a notorious drug haven in Borikiri.

“While operatives in Plateau State on Friday, September 20, arrested a wanted suspect, Jonathan Ali Abuttur, 46, at the Agingi-Rukuba Road, Bassa LGA, in possession of 808kg of cannabis sativa concealed in 68 bags of sugar and fertiliser, their counterparts in Kwara State also nabbed Shaibu Musa with 28kg of the same psychoactive substance.”

Electricity customers on Band A feeders may face a tariff increase due to the rising electricity tariff shortfall, or subsidy.

The Federal Government’s electricity subsidy rose from N102.30bn in May to N181.63bn in September.

In April, the Nigerian Electricity Regulatory Commission removed subsidies for Band A feeders, which had a N140.7bn subsidy.

This change raised tariffs to N225/kWh for Band A customers, who receive at least 20 hours of electricity daily.

The decision sparked outrage among Nigerians, including labour unions and education and health institutions, whose electricity bills tripled.

When the subsidy dropped to N102.30bn in May, the government lowered the Band A tariff to N206.80/kWh. However, the tariff increased to N209/kWh in July as the subsidy rose to N158bn in June.

According to data released by the NERC, the subsidy rose to N163.87bn in July, N173.88bn in August, and N181.63bn in September, fuelling speculations that there may be another tariff increase in the October Multi-Year Tariff Order unless the cost of power generation drops.

It was gathered that the foreign exchange crisis has been the major driver of the electricity subsidy. The NERC put the dollar exchange rate at N1,494.1 in July; 1,564.3 in August; and N1601.5 in September.

According to the regulator, the dollar rate and inflation are the determinants of the cost of power production. In the MYTO order to all the power distribution companies for September, the NERC said, further to Section 23 of the MYTO-2024, the supplementary orders are to reflect the changes in the pass-through indices outside the control of licensees including inflation rates, naira/dollar exchange rate, available generation capacity and gas price for the determination of cost-reflective tariffs.

The naira to the US dollar exchange rate of N1,601.50 to a dollar was adopted for September.

The Nigerian inflation rate of 33.40 per cent for July 2024 as published by the National Bureau of Statistics was applied to revise the Nigerian inflation rate projection for 2024 while the US inflation rate of 2.90 percent for July 2024 was applied to revise the US Inflation rate projection for 2024.

As of September, the NERC maintains the benchmark gas-to-power price of $2.42/MMBTU based on the established benchmark price of gas-to-power by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in line with Section 167 of the Petroleum Industry Act 2021.

The cost of power generation is also being impacted by contracted gas supply and transportation prices outside the domestic gas delivery obligation quantities based on effective gas sale agreements approved by the commission.

When the commission reduced the Band A tariff to N206/KWh in May, its spokesperson, Usman Arabi, said that the reduction was due to the naira appreciation in the foreign exchange market.

It was observed that despite the rise in the cost of power generation, the Federal Government has yet to approve another tariff hike, perhaps due to the current economic hardship in the country, especially with the rise in the cost of premium motor spirit otherwise known as petrol.

For example, in the Abuja Electricity Distribution Company, the commission said the energy delivered was 611 megawatt-hours per hour in April.

The same was delivered from May to September. While the generation cost was N103.9 per kilowatt-hour in April, it dropped to N87.33/KWh in May and rose to N113.69/KWh in September.

The AEDC had a transmission and admin cost of N9.1/kWh in April, N8.9/kWh in May and N9.8/kWh in June. It is N10.4 in September.

It was gathered from the NERC data that the end-user cost-reflective tariff in AEDC was N185/kWh in July; N192.2/kWh in August and N195.5/kWh in September.

Similarly, the end-user allowed tariff was N117.31/kWh in the three months, indicating that despite the rise in the cost of power generation, the NERC pegged the allowed tariffs at the same rate in July, August, and September.

However, it was gathered that the Discos are already complaining over the non-cost-reflective tariffs.

Some of them are currently refusing to off-take electricity allocated to them from the grid, demanding that subsidies be removed in all bands.

A top official of one of the Discos had said that the power companies were finding it difficult to pick the extra energy produced by generation companies because they were not happy with the tariff on other bands apart from Band A.

“As it is now, we are operating at a loss. Yes, they supply more power but this problem could be solved with improved tariff for the other bands and more meter penetration to recover the cost,” the Disco official, who pleaded not to be named due to lack of authorisation to speak on the matter, said.

The Minister of Power, Adebayo Adelabu, recently decried the rejection of power by electricity distribution companies, describing it as regrettable.

According to the minister, generation peaked above 5,000 megawatts recently, but “unfortunately, it had to be ramped down by 1,400MW due to the inability of the Discos to pick the supply.”

Adelabu lamented the development, saying “This is really regrettable considering that the government is on course to increase generation to 6,000MW by the end of the year.”

Adelabu called on power distribution companies to take more energy to prevent grid collapse as the grid’s frequency drops when power is produced and not picked by the Discos.

Credit: The Punch