United Bank for Africa (UBA) Plc has extended the application period for its ongoing rights issue, shifting the deadline from Friday, 5th September 2025, to 19th September 2025.

The disclosure, published on the Nigerian Exchange (NGX) and signed by Group Company Secretary Bili Odum, confirmed that the Securities and Exchange Commission (SEC) had approved the revised timeline.

In a note explaining the adjustment, UBA said the extension is aimed at giving shareholders “additional time to fully exercise their rights and participate in the Rights Issue.”

A Key Step in Meeting CBN’s Recapitalization Mandate

UBA’s fundraising effort is directly tied to the Central Bank of Nigeria’s (CBN) recapitalization directive, which requires commercial banks with international authorization to increase their capital base to N500 billion.

The bank’s ongoing offer covers 3,156,869,665 ordinary shares of 50 kobo each, priced at N50 per share, and is expected to raise over N157 billion. The structure of the issue allows shareholders to take up one new share for every thirteen ordinary shares held as of the qualification date of 16th July 2025.

Backstory: UBA’s Rights Issue History

This is not UBA’s first major capital-raising exercise. In November 2024, the bank launched a N239 billion rights issue priced at N35 per share. Investor appetite proved strong, with subscriptions reaching N251 billion. After adhering to the offer terms, the bank accepted N240 billion, boosting its capital base to N355.2 billion.

That earlier success provides confidence that the current extension to 19th September could drive further shareholder participation and put UBA firmly on track to meet — or even surpass — the recapitalization threshold.

UBA’s Q1 2025 Performance Underscores Growth Momentum

The extension comes against the backdrop of strong financial results. In the first quarter of 2025, UBA posted a pre-tax profit of N204.27 billion, marking a 30.65% increase year-on-year.

Net profit also surged 33.15%, hitting N189.84 billion compared to N142.58 billion in Q1 2024.

• A breakdown of its income drivers shows:
• Interest income rose 36.09% to N599.83 billion.
• Loans and advances generated N260.56 billion (+31%), contributing 43.44% of the total.
• Investment securities earned N291.86 billion (+44.96%), making up 48.66%.
• Income from cash balances climbed 17% to N47.42 billion, representing 7.9%.
• Non-interest income also showed resilience, with strong performance in transaction-based revenues:
• Electronic banking income: N47.84 billion (+7.86%)
• Account maintenance fees: N10.39 billion (+11.09%)

Investor Angle: Why This Rights Issue Matters

Some analysts believe that UBA’s decision to extend the application window is not just procedural but strategic. With Nigerian banks racing against time to meet the CBN’s capital requirements, maximizing shareholder participation is crucial to avoid reliance on expensive alternatives.

The pricing at N50 per share signals management’s confidence in the bank’s valuation, especially given that the previous rights issue in 2024 was priced at N35 per share and still oversubscribed.

If fully subscribed, the combined effect of the 2024 and 2025 rights issues will significantly lift UBA’s capital buffer, positioning it competitively against peers like Zenith Bank, Access Holdings, and GTCO, who are also actively raising fresh equity.

How Zenith and Access played the recapitalization game

Two of UBA’s peers moved earlier and by slightly different routes.

• Access Holdings / Access Bank ran a large rights programme that closed successfully and was cleared by regulators, raising roughly ?351 billion via the issuance of 17.77 billion shares at about ?19.75 per share — a transaction that lifted its capital well above the CBN minimum and made Access one of the first to cross the line under the new rules.

• Zenith Bank combined a rights issue with a public offer (a hybrid approach) and reported raising about ?350.4 billion under that programme. The hybrid structure allowed Zenith to tap both existing shareholders and new public investors in a single exercise.

What the choices tell you

Three practical differences stand out:

• Timing and market appetite. Access and Zenith moved earlier and posted large raises that exceeded the CBN threshold, freeing them from near-term recapitalization pressure. UBA is following with a second tranche; it is leaning on seasoned investor appetite and a history of oversubscription to reach the target.
• Structure and pricing. Access priced low per share but issued many shares, producing a large absolute rise. Zenith used a rights + public offer mix to widen distribution. UBA’s ?50 price point is higher than those earlier offers, signaling management’s confidence in valuation after solid quarterly results and prior shareholder support.
• Balance-sheet and funding mix. Banks that closed early (Access, Zenith) now have the regulatory headroom to pursue growth or M&A without the immediate distraction of further equity raises. UBA’s staggered approach — a prior rights round in 2024 followed by the current tranche — spreads dilution and gives management an option to absorb capital in stages rather than all at once.

A sharp surge in artificial intelligence spending by America’s largest technology companies has propelled U.S. equities to fresh records. Still, Goldman Sachs analysts caution that a dramatic pullback in investment could wipe out much of those gains.

In a research note released this week, strategists led by Ryan Hammond highlighted how capital expenditures from hyperscalers such as Microsoft, Amazon, Alphabet, Meta, and Oracle have fueled revenue growth across the AI supply chain — from semiconductor giants like Nvidia to cloud infrastructure and hardware providers.

Record Spending, Record Valuations

Goldman estimates that hyperscaler capital spending has already reached $368 billion in 2025, surpassing earlier forecasts. These outlays, primarily for data centers, GPUs, and cloud capacity, have translated directly into real revenues for chipmakers and service providers, powering the boom in AI-linked stocks.

The five largest companies in the S&P 500 — Nvidia, Microsoft, Apple, Alphabet, and Amazon — currently trade at a price-to-earnings multiple of 28, lofty by historical standards but still well below the peaks of 40 in 2021 and 50 during the 2000 dot-com bubble. Goldman stresses that, unlike past speculative manias, today’s valuations are supported by tangible revenue growth.

The Risk of a Spending Slowdown

Even so, analysts warn that the market is vulnerable to a sudden shift. Should hyperscaler investment revert to 2022 levels, AI hardware and services providers could lose out on 30 percent of the projected $1 trillion in S&P 500 sales growth expected in 2026. In such an “extreme scenario,” Goldman’s model suggests the S&P 500’s overall multiple could fall by 15 to 20 percent.

“The durability of this rally is tied directly to capex momentum,” Hammond and his team wrote, noting that investor enthusiasm is highly dependent on hyperscalers maintaining their aggressive pace of investment.

Echoes of Past Tech Booms — But With a Difference

Goldman stops short of labeling the current rally a bubble. Unlike the dot-com era, the revenues generated by AI demand are immediate and measurable. Nvidia, for example, has booked record-breaking quarterly sales from data center chips, while cloud providers have reported accelerating customer adoption of AI services.

The historical parallel, however, is instructive. In the early 2000s, telecom carriers poured hundreds of billions of dollars into network buildouts, only to abruptly cut spending when revenues failed to match projections — a collapse that left equipment suppliers with excess capacity and stock prices in freefall. Similarly, the cloud-computing boom of the 2010s saw an arms race in data center investment, though in that case, demand ultimately caught up and reshaped the enterprise software industry.

Today’s AI spending wave shares elements of both: a massive upfront infrastructure buildout with uncertain long-term demand curves, but also faster near-term monetization than earlier cycles.

Momentum Still Upward — For Now

Despite concerns about sustainability, the rally continues. AI-related stocks rose 32 percent in 2024 and have added another 17 percent so far in 2025. Analysts broadly expect spending growth to slow toward the end of 2025 or into 2026, but leading tech firms have consistently revised guidance higher, suggesting the inflection point may be further away than feared.

Currently, Wall Street remains split. Bulls argue that AI is a transformative technology still in the early innings, while skeptics warn that markets are pricing in perfection. Goldman’s message to investors lands somewhere in between: the upside is real, but so are the risks.

The Nigeria Customs Service (NCS) has announced a new De Minimis policy that will allow duty-free clearance for imported goods valued at $300 or less, effective Monday, September 8, 2025.

The policy is designed to simplify customs procedures, support cross-border trade, and strengthen Nigeria’s position as a regional hub for e-commerce.

Announcing the decision in a press release issued Sunday, September 7, 2025, Abdullahi Maiwada, PhD, Assistant Comptroller of Customs and National Public Relations Officer for the Comptroller-General of Customs, said the new framework will cover low-value consignments, e-commerce shipments, and passenger baggage. He noted that the initiative brings Nigeria in line with global benchmarks under the World Trade Organization Trade Facilitation Agreement and the World Customs Organization’s Revised Kyoto Convention.

“The Nigeria Customs Service Board (NCSB), at its 63rd regular meeting held on Tuesday, September 2, 2025, chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has approved a De Minimis Threshold Value for low-value consignments imported through express shipments or by passenger baggage,” the statement read.

It continued: “This decision, which takes effect on Monday, 8th September 2025, aligns with the best global practices that aim to simplify clearance processes for low-value consignments, enhance trade facilitation, and provide clarity for e-commerce stakeholders and travelers. After a comprehensive review of similar practices across continents, the Board approved $300 as Nigeria’s official De Minimis threshold. This exemption will apply to low-value imports, e-commerce consignments, and passenger baggage.”

How the policy works

Each individual will be allowed to benefit from the exemption for up to four importations per year, provided the items are not prohibited or restricted. Eligible consignments will be released immediately at ports or entry points without the need for post-clearance documentation, significantly reducing delays that have long frustrated importers and travelers.

The NCS also announced the creation of multi-channel helpdesk platforms to guide stakeholders, address inquiries, and resolve complaints. However, the agency cautioned against abuse of the new framework, warning that attempts to manipulate invoices or evade duties will attract strict penalties, including forfeiture of goods or arrest.

Comparative context

Nigeria’s $300 threshold is significant, but it also highlights how countries balance revenue protection with trade facilitation. In the United States, before the Trump administration axed it, the De Minimis threshold stood at $800 — one of the most generous in the world — a policy credited with fueling the country’s booming e-commerce market by encouraging imports of small packages. The European Union operates a much lower limit, at €150, while in the United Kingdom the threshold is £135.

Within Africa, thresholds vary widely. South Africa does not operate a clear De Minimis framework, often applying duties even on very small imports. Kenya allows exemptions up to $50, while Ghana’s level is $200. Nigeria positions itself above many regional peers by setting its limit at $300, signaling an openness to e-commerce-driven trade while still being more conservative than the U.S. or some advanced economies.

Trade experts suggest that this move could help Nigeria capture a larger share of cross-border retail transactions in West Africa, especially as Lagos continues to emerge as a logistics hub for international delivery firms.

Some analysts believe that the $300 threshold could serve as a catalyst for Nigeria’s fast-growing e-commerce sector, where small merchants and individual shoppers often face bottlenecks due to complex and costly customs procedures. The policy is expected to improve supply chain efficiency, reduce costs for online retailers, and encourage more Nigerians to engage in cross-border e-commerce by easing clearance for lower-value items.

It also positions Nigeria closer to regional peers that already operate with De Minimis thresholds, boosting competitiveness and investor confidence in its trade infrastructure.

The new policy is expected to reduce clearance delays, lower trade transaction costs, and make Nigeria more attractive as a hub for logistics and retail. However, many believe that its success will depend on consistent enforcement and transparency, as stakeholders warn that any abuse or uneven application could undermine the gains.