Alawuba, Yomi-Ajayi: UBA Prioritises Responsible Growth that Supports

Financial Ecosystems across Countries

Over the weekend, UBA America partnered with Devex, a social enterprise and media platform for the global development community, which aims to connect with and inform development, health, humanitarian, and sustainability professionals through news, business intelligence, funding and career opportunities related to international development, to host their flagship event Devex World, on the sidelines of the International Monetary Fund/ World Bank Annual Meetings in Washington DC. The event brought together key stakeholders from the global development sector to discuss transformative ideas shaping the future of aid and development. The Group Managing Director, UBA Group, Oliver Alawuba, and the Chief Executive Officer, UBA America, Sola Yomi-Ajayi, speak about the activities of UBA Group and UBA America, and how the bank is connecting Africa to the rest of the world and connecting Africans in settlements, payments, and capital flow across Africa, United States, UAE, and other major countries of the world. The bank’s financial performance, its plans to shore the capital base and other pertinent issues in the global economy, were also discussed. Eromosele Abiodun and Nume Ekeghe present the excerpts:

Can you tell us about your experience so far in Washington?

So far, in Washington World Bank IMF meetings, it has been a good show for

Nigeria. Yesterday, we had a session where the Minister of Finance and the governor of the Central Bank of Nigeria (CBN) spoke to several investors on the journey so far in terms of the reform being done in the country. And I think it was a very beautiful time because they had an opportunity to explain the progress Nigeria is making in the economic reform of this current administration. And for us as banks, we also bear to add our voice to say, yes, things may be tough today in the country, but we have seen improvements, and the investors are also witnessing those improvements, and the confidence is returning into the Nigerian economy.

How does the bank differentiate itself from other financial institutions in terms of its offerings and customer experience?

For UBA, we are currently present in 24 countries, and we are present in key financial centers of the world, including the United States of America. That alone shows that UBA is connecting Africa to the rest of the world and connecting Africans among themselves, in settlement, payments, and capital flow. And to do this, the most critical philosophy for UBA is customer experience, excellent customer experience. So, what we do is to get things done from the perspective of the customer. The customer is the reason why we do our business, and for us, Africa is our home, and Africa remains the frontier market for us in UBA.

Can you speak about your operations in the USA?

We are proud to say that UBA is the only bank originating from Africa that is present in the United States of America, regulated with a national banking license,

regulated by the Office of the Comptroller of the Currency (OCC) and that is a very prime position for us to support payments and to support settlements of businesses that originating out of Africa, or between Africa and the rest of the world.

Today, UBA America is 40 years in America. UBA America is a settlement bank for so many banks out of Africa, and this is what has been very difficult for banks out of Africa to have settlement banks in our correspondent banks in America.

UBA America is playing that role. UBA America is also banking many central banks because they understand the African business, and they are able to bank many central banks as even reserve banks of the central banks.

With UBA’s foreign operations, how do you mitigate risks associated with currency fluctuations?

Because of the fact that we are present in many countries, we will have access to foreign exchange. Things don’t get bad in all the countries at the same time, we have a very diversified portfolio. So, we are able to optimise the sources of efforts across all those countries. So, we stay on board, we stay moving because we have access to foreign exchanges across several countries where we are present, and we are optimising them more efficiently

Regarding the recapitalisation of the banking sector, are you planning to acquire some banks unable to meet recapitalisation and what are your plans?

The recapitalisation exercise has four options. One is to do a public offer, right issue, acquisition and merger, or to come down on authorization. For UBA, we ruled out acquisition, we ruled out merger for UBA. UBA will raise the capital and we still have between now and March 31, 2026 to raise the capital, but in the next few weeks, we would commence the process.

Already our applications are with the Security and Exchange Commission for approval, and I believe they will look at it. In few weeks, UBA will start, and UBA is positioned quite strongly to meet that recapitalisation mandate.

What is UBA’s long-term strategy for expanding its presence in the USA and market share?

We have an aspiration in UBA to be top three in any geography where we have presence. And the way we want to increase the market share clearly will be more of organic growth. We want to grow organically, and if we have the opportunity for inorganic growth, why not.

Can you tell the level of trade UBA is facilitating between Africa and the

USA and what is the nature of such businesses?

The truth of the matter is that there are several investors from United States of America who are interested in Nigeria. Recently, we have seen some of the monetary policies that the central bank has put in place and how they have encouraged a lot of foreign direct investment and foreign portfolio investment into Africa, and a lot of those foreign portfolio investments go to UBA and a lot of some of the foreign direct investments are also coming to UBA.

We are pushing strongly to support the financial services institutions in Africa to be able to serve as a correspondent bank to do transactions and settlements within the United States of America.

Your recent results were commendable, given the operating environment. How sustainable will your results be going forward?

Nigeria is a country that is over 200 million people with a GDP of over $400 billion. UBA keeps in mind that we are present in 24 countries, and over 60 per cent of our revenue comes outside of Nigeria. So the result we release are the core revenue from core business of UBA and that revenue would continue to grow.

We saw opportunities in Africa early enough, and we have gone into Africa and invested. Today, Africa is contributing around 70 per cent and those markets are really growth markets. So, it is not necessarily about Nigeria for UBA, is a lot more about Africa and the International Bank. Today, the event where we are witnessing is co-sponsored by UBA America, and they are doing quite well in America.

How successful would your rights offer be given the high interest rates environment?

Anyone who is buying UBA shares is buying businesses in 24 countries, and the person is buying a very diversified portfolio. So you are not concentrating on the issues in Nigeria, which can change in a few months. The high interest rate regime mentioned can change in the medium term in Nigeria. But UBA is in 24 countries. A piece of the share is a piece of businesses across the 24 countries.

What should your customers be expecting from UBA in the medium and long term?

We are in Africa for a long time. UBA is not just about banking, UBA is about changing the lives of Africans. As we do that, as we push ourselves to change the lives of Africans, we will clearly going to be generating revenue and we will keep paying good dividends and we will keep actually making sure that our customers are getting the best of services through the technology that we are deploying and through the various markets and products we will be producing.

Yomi-Ajayi:

Can you introduce yourself and explain your role at UBA America?

My name is Sola, and I’m Nigerian. I serve as the Group Executive Director for UBA Group, overseeing international operations outside Africa. Additionally, I’m the CEO of UBA America, where I lead our banking efforts in the U.S. We have been operating here for 40 years, having secured our banking license in 1984. We offer banking services to U.S. corporations doing business in Africa, African corporations needing support in the U.S., and the development community. We facilitate funds and initiatives supporting the UN’s Sustainable Development Goals (SDGs) and work across various project streams to extend our reach beyond major cities, especially in Nigeria, where we have deep market penetration.

How does UBA’s infrastructure support development work across Africa?

We leverage our extensive network, especially in Nigeria where we are present in every state, city, and local government. This allows development partners to reach more communities and maximise their impact on poverty reduction, education, food security, and other pressing issues. We believe in giving back, so our role involves partnering with institutions to address key social challenges and support those affected by displacement and other hardships.

Could you tell us more about your focus on facilitating flows into Africa?

My role involves fostering relationships with development organisations and corporate institutions globally, be it in the U.S., Europe, or elsewhere, to bring investment, trade, and capital flows into Africa. We support these connections to enhance trade, foster economic empowerment, and elevate living standards.

How significant has UBA America’s impact been over the past 40 years?

The impact has been substantial. UBA America is the second most profitable entity within the UBA Group, which spans 24 countries. Our successful model here is being replicated in the UK, France, and the UAE, supporting global business flows with Africa and contributing to economic growth across our countries of operation.

What role does UBA play in the African Free Trade Zone?

The Free Trade Zone has allowed African businesses, including those in Nigeria, to engage in trade with fewer regulatory obstacles. UBA supports this by facilitating and confirming Letters of Credit (LCs) for imports and exports. In the past, African banks often needed foreign bank confirmations to access LCs. Now, UBA America bridges this gap by confirming LCs for beneficiaries in regions like India, China, North America, and Europe. We bank over 85 per cent of Nigerian banks and provide trade lines and clearing services through our membership in the U.S. Federal Reserve System, the only African bank with this privilege.

How does UBA balance profit with developmental goals?

While profit is essential, we prioritise responsible growth that supports the financial ecosystems in the countries where we operate. Our goal is to enable smaller institutions to grow, serve their clients, and build financial stability across the region. This approach allows us to contribute meaningfully to the development of financial systems, especially in emerging markets.