(Ecofin Agency) - Nigerian billionaire Tony Elumelu's UBA strengthens trade financing operations
In a significant move to bolster its support for local small and medium-sized enterprises (SMEs), the Nigerian United Bank for Africa (UBA) has inked a trade finance agreement worth $150 million with the African Export-Import Bank (Afreximbank). The agreement was formalized on November 11 during the third Intra-African Trade Fair (IATF2023) hosted by Afreximbank from November 9 to 15 in Egypt.
The financing facility aims to enhance UBA's international trade transactions, particularly for strategic imports. Founded by Nigerian tycoon Tony Elumelu, UBA aims to fund commercial activities and trade-related transactions for its client enterprises across various sectors of the Nigerian economy. This development is part of a broader trend, as several African financial institutions, including UBA, have entered financing agreements totaling one billion dollars with Afreximbank.
UBA, operating in 20 African countries, reported a net profit of 449.296 million Naira in its consolidated results for the third quarter of 2023, a significant increase from 116.042 million Naira during the same period in 2022. Olivier Alawuba, the Group Managing Director of UBA, highlighted that the bank's net loans and advances to its clientele reached 5.07 trillion Naira as of September 2023, representing a 47.2% increase since the beginning of the current year.
This strategic financing collaboration is expected not only to stimulate local commerce but also to contribute to UBA's continued financial growth and its commitment to supporting economic development across Africa.