Nigeria's UBA granted licence to operate as a UK commercial bank by regulatory authorities

NIGERIAN commercial bank the United Bank for Africa's (UBA) London subsidiary has obtained regulatory permission from the financial authorities in the UK to carry out wholesale banking services in the country.

Over the last two decades, numerous Nigerian banks have gone international, opening up UK branches and obtaining permission to operate as financial houses. Yesterday, UBA became the latest to join the list after it was granted an approval licence by the Prudential Regulation Authority, the UK financial services regulatory body.

This move makes UBA the only sub-Saharan African bank to conduct banking activities in New York and London, as well as in 20 other countries across Africa. UBA has been operating in Africa since 1949, referred to then as the British and French Bank but was incorporated as a limited liability company on 23 February 1961 under the Compliance Ordinance, after which it changed its name.

UBA managing director Kennedy Uzoka, said: “This authorisation strengthens our capabilities in meeting the growing cross-border financing needs of our customers. It enhances our customer coverage and product offerings whilst positioning our group as an optimal conduit for trade and foreign investments into and across Africa as well as export flows to the UK.

"Importantly, the licence will enable us to fulfil our aspiration of deepening financial intermediation in sub-Saharan Africa and providing the much-needed financial support to the broader real sector of the African economy.”

Andrew Martin, the chief executive of the London subsidiary, added: “This enhanced positioning of our business is timely, as it comes at a time when the UK is seeking to expand trade and broaden economic ties with Nigeria and Africa in general.”

As part of the transformation process, resulting from the authorisation, the current name of UBA Capital Europe will change to United Bank for Africa UK. In addition to a full suite of treasury services, cash management, corporate lending and wholesale deposit offerings to professional and eligible counterparties, the operations of United Bank for Africa UK now extends to all aspects of trade finance, issuance, acceptance, confirmation and refinancing of letters of credit of different variations.