- Tony Elumelu officially launched UCEE Microfinance Bank to leverage technology to reach the financially excluded
- Like his many businesses, Elumelu is optimistic that the new addition will exceed expectations
- TheRadar highlights other businesses associated with the serial investor
On Monday, August 19, billionaire businessman Tony Elumelu officially launched UCEE Microfinance Bank (MFB), a digital MFB that will leverage technology and finance to reach the unbanked.
The MFB is an addition to the chains of businesses linked to the consummate businessman and serial entrepreneur.
At the launch, Elumelu expressed optimism that the MFB will achieve its goals, improve lives and empower more people by creating prosperity through digital microfinance.
He said, “I am very pleased that the group CEO and his team get things right, and they get things done. They are highly execution-focused, so when you share an idea with them, you don’t need to follow up. They run faster than you ever imagined. I was not in doubt, and I didn’t lose sleep about what they had put together.
“The CEO is going to help realise the assignment by making sure they improve lives, create prosperity and make everyone in the society live a more comfortable life. We know you will surpass our collective expectations, and I know you will go beyond the shore of Nigeria.”
The Group Chief Executive Officer of United Capital Group, Peter Ashade, noted that the MFB was birthed to deepen financial inclusion in response to data on the number of Nigerians excluded from the financial services sector.
He said, “The coming on board of UCEE Microfinance Bank marks a significant milestone in the nation’s financial services industry. Besides being the unveiling of the MFB, it also marks the beginning of a vision that aims to redefine the banking experience in Nigeria and bring about positive changes in the lives of the people.
“We aim to achieve unrivaled experience, deliver the best financial products, offer seamless services, and ultimately transform the lives of our customers and stakeholders. Our vision is to build a sustainable, world-class, modern financial institution that serves as a gateway for prosperity into the Nigerian ecosystem.”
Other businesses associated with Tony Elumelu
Apart from UCEE MFB, Tony Elumelu has huge investments in many other businesses, especially in the financial, hospitality, power, oil and gas, agro-allied and insurance sectors. Like one with the Midas (and the red) touch, all of these businesses are flourishing.
As of the end of 2023, five companies associated with Elumelu closed the year as one of the top performers having gained N1.6 trillion in market capitalisation, one of the largest gains for a group of companies owned by an individual on the NGX. The combined market valuation of the companies by year-end was N2.1 trillion, a remarkable increase from the N467 billion at the start of the year.
1. United Bank for Africa (UBA) Plc: UBA Group may well be referred to as Elumelu’s darling child. This is not surprising given the number of shares he owns in the bank and the group. In 2023, Elumelu raised his shares in UBA by 161.90 million from 2.38 billion in 2022 to 2.54 billion (direct and indirect).
With the bank seeking more funds to increase its capital base, currently at N115.82 billion, Elumelu announced plans to increase his stake in the bank by reinvesting his entire dividends through rights issue.
UBA, a pan-African financial services group, operates in 20 African countries, the United Kingdom, France, the United Arab Emirates (UAE) and is the only African bank with a commercial deposit-taking presence in the United States.
With more than 21 million customers globally, UBA provides corporate, commercial, small and medium-scale enterprises (SME), wholesale, internet and consumer banking services.
The financial services group has made significant strides and is one of the leading groups in Nigeria. In the first quarter (Q1) 2024, the group’s retained earnings crossed the N1 trillion mark on the back of its net income, which increased by 166 per cent year-on-year to N142.6 billion from the N53.6 billion recorded in Q1 2023.
The group’s profit before tax also increased by 155 per cent to N156.3 billion from N61.4 billion it recorded in Q1 2023, while its net interest income grew by 151 per cent to N300.7 billion from N119.6 billion recorded in Q1 2023.
2. Transnational Corporation (Transcorp) Plc: Another business under Elumelu’s chairmanship is Transcorp Group, the largest quoted conglomerate in Nigeria with subsidiaries like Transcorp Power Plc, Transafam Power and Transcorp Hotels Plc, foremost hospitality brand and owner of the iconic Transcorp Hilton, Abuja, Transcorp Hotel, Calabar and a digital platform, Aura by Transcorp Hotels.
In June 2023, Elumelu and his family increased their stake in the conglomerate to more than one-third, with a combined interest of 14.6 billion shares, which translated to over N51.6 billion.
With the shares acquisition, the business mogul, his relatives, his fully-owned investment firm, HH Capital and the family-owned investment company, Heirs Holdings, hold at least a 36 per cent share of the conglomerate between them.
The increase in the family’s stake was due mainly to the 7.4 million shares, worth N22 million, bought by Elumelu’s wife, Awele Elumelu, on June 5, 2023.
The group has also seen remarkable growth in its financials. In Q1 2024, Transcorp Group’s revenue grew from N82.1 billion in 2023 to N175.4 billion, representing a 114 per cent increase. Its profit before tax also increased by 283 per cent to N70.9 billion from N18.5 billion recorded in Q1 2023.
3. Heirs Holdings (HH): The family-owned investment company has its tentacles in the financial services, power, energy, real estate and hospitality, healthcare and technology sectors, all sectors that “provide long-term returns and have the ability to transform Africa’s economy.”
Some of the businesses under the HH portfolio are Heirs Insurance Brokers Limited (HIB), Heirs Insurance Limited, Heirs Life Assurance Limited, Heirs Energies Limited, Avon HMO and Avon Medical.
As of February 2024, the listed portfolio companies of Heirs Holdings recorded a combined capital gain of N1.9 trillion and a combined market valuation of N2.4 trillion at the Nigerian Exchange (NGX) and the NASD.
4. Afriland Properties Limited: Afriland Properties serves as the real estate arm of Elumelu’s businesses. It provides services such as property management, investment, development and end-to-end services along the real estate value chain. Some of them are Iris Court, a block of residential apartments and Afriland Complex, a commercial venture, both located on the Lagos Mainland.
The company’s profit before tax for the 2023 financial year saw a 34 per cent increase to N2.41 billion from N1.80 billion recorded in 2022. Also, its revenue increased from N1.89 billion in 2022 to N4.72 billion in 2023, representing a 150 per cent increase.
The total assets of the company witnessed a 76 per cent increase from N19.38 billion in 2022 to N34.07 billion.
5. United Capital Group: Among the suite of service offerings in United Capital Group is investment banking, asset management, trusteeship, securities trading, wealth management and consumer finance.
The group is the parent company of the recently launched UCEE MFB.
The group’s profit before tax stood at N9.06 billion in the first half (H1) 2024, representing a 63 per cent increase from the N5.54 billion recorded in the corresponding period in 2023. Its gross earnings increased by 38 per cent year-on-year in H1 2024 from N11.01 billion in H1 2023 to N15.15 billion.
United Capital Group’s assets also grew by 27 per cent to N1.19 trillion in H1 2024 from N931.9 billion as of the full year 2023.
6. Africa Prudential: Some of the services offered by the share registration firm are investor relations, share registration, corporate services, capital market issuer service and probate and transmission, providing services to various industries. The firm also launched a new investment solution product, Invearn, which serves as a one-stop shop for customers’ capital market needs.
At its 11th Annual General Meeting (AGM) in March 2024, the firm said its total assets grew to N22.9 billion from the previous year’s N19.2 billion, representing a 19 per cent increase.
7. Heirs Holdings (HH) Capital Limited: HH Capital is Elumelu’s fully-owned investment firm and special purpose vehicle. In May 2023, the company acquired an additional 70 million shares worth N560 million in UBA Plc. The acquisition increased the company’s shares in UBA to 210,843,816 units of shares from 140,843,816 as of December 2022.
8. Heirs Insurance Group: Heirs Insurance Group is a digital and affordable insurance solutions group, offering such services as insurance advisory, travel insurance and comprehensive motor insurance. Within the group’s business portfolio are Heirs General, Heirs Life and Heirs Insurance Brokers.
The insurance group recorded a 226 per cent increase in its gross written premium, from N6.1 billion in 2021 to N19.9 billion as of December 2022, becoming the fastest-growing insurance group in Nigeria.
Its underwriting profit also grew to N2.7 billion, profit before tax stood at N849.4 million while N2.6 billion claims were paid by the group in the period under review.
9. Transcorp Power: Elumelu’s power and energy company was born in 2015 following the merger of Ughelli Power Limited and Ughelli Power Plc, to harmonise and manage the operations of Transcorp Power’s business.
Transcorp Power, which was listed on the NGX main board in March 2024, had its shares rise by 10 per cent on the first trading day.
The power company operates the Ughelli Power Plant in Delta State, which boasts of an installed capacity of 972 megawatts (MW) from an available capacity of 160MW at the time of acquisition.
Within four years of acquisition, Transcorp Power invested and increased the power plant’s available capacity to 680.83MW, exceeding the five-year target of 670MW set by the Bureau of Public Entreprises.
10. Tony Elumelu Foundation (TEF): Founded in 2010, TEF embodies Elumelu’s philanthropic nature, empowering a new generation of African entrepreneurs, driving poverty eradication, catalyzing job creation across all 54 countries in Africa and increasing women's economic empowerment.
Through the TEF Entrepreneurship Programme, launched in 2015, TEF has trained over 1.5 million young Africans on its digital hub, TEFConnect. It has also disbursed over $100 million in direct funding to 20,000 young African women and me, who have collectively created over 400,000 direct and indirect jobs.
Through TEF, Elumelu lives out his belief in Africapitalism, which positions the private sector and entrepreneurs as the catalyst for the social and economic development of Africa.
CEO Steeze: Tony Elumelu shows he’s got it in these 5 fashion styles
Meanwhile, TheRadar reported that one thing that is probably synonymous with Tony Elumelu is that he is a consummate businessman, being the founder and Group Chairman of many companies.
However, beyond sitting on the board of chains of businesses in Nigeria and across the globe, Tony Elumelu is also a fashion inspiration. A stroll through his Fashion Week-esque Instagram page is all the conviction you need.
