Africa can bridge rising infrastructure gap when it unlocks innovative financing by inviting and enabling private sector to co-lead infrastructure development in the continent, Group Chairman, United Bank for Africa Plc (UBA), Tony Elumelu has said.
He spoke yesterday at the African Caucus Meeting, held in Bangui Central African Republic, with theme: ‘Resilient Infrastructure, Human Capital, and Green Assets’.
He explained that Africa faces a deep and persistent infrastructure gap. “From roads to ports, power to internet connectivity – we lag behind. We cannot achieve prosperity without the foundations of modern development. Without addressing these gaps, we cannot unlock the growth and prosperity our people deserve. To bridge this divide, we must do three things strengthen our fiscal capacity and drive efficiency,” he said.
He said that powering Africa’s future requires energy access, which remains the biggest enabler or barrier to progress, adding that up to 70 per cent of Africans lack electricity.
“My home country, Nigeria, generates less than 7,000 MW for over 200 million people. If we are to industrialize, create jobs, and participate meaningfully in the global AI revolution, we must invest aggressively in energy — from renewables to cleaner gas-based solutions,” he said.
“Imagine what Nigeria’s economy could become with 100,000 megawatts of reliable, affordable energy. That is the scale of transformation we need. And the story is not different across Africa,” he added.
Elumelu explained that: “through investments in Transcorp and Heirs Energies, we are working to solve this challenge – generating power, exporting it through the West African Power Pool, and using gas from our oil operations to power our plants. This is Africapitalism in action: private capital solving public challenges”.
He said Africapitalism is the belief that the African private sector must take the lead in driving economic development. It is about long-term investments in key sectors that create both economic returns and social impact.
“To succeed, we need strong partnerships. Governments must create the right environment. Private sector must bring capital and innovation. And our development partners must support Africa’s realities,” he said.
Elumelu said that the youths are Africa’s biggest assets adding that “
No resource is more valuable than our people – especially our youth. Africa is the youngest continent on earth, with over 60 per cent of our population under 35. This presents both our greatest asset or our greatest risk”.
“If empowered, our youth can transform Africa. If neglected, they can become a source of instability.”
Elumelu explained that Africa’s development is our responsibility. No one else will do it for us. Africa’s future is in our hands. No one will build this continent for us. We must lead. “Power is everything. No industrial revolution can happen without electricity. We must prioritise energy. Without power, there can be no progress. We must invest in our youth. They are not just our future – they are our present.”
“Together, by working across public and private sectors, and in partnership with institutions like the IMF and World Bank, we can build an Africa that is resilient, inclusive, and full of opportunity”.
FCMB Group records N79.3b profit in H1 (brief)
FCMB Group Plc reported N79.3 billion profit before tax in first half 2025, representing a 23 per cent increase on corresponding period of 2024.
Gross revenue for the period rose to N529.2 billion, reflecting a 41.3 per cent increase from N374.5 billion recorded in the first half of 2024, supported mainly by a 70.3 per cent growth in interest income. However, non-interest income declined by 35.1 per cent due to a N36.6 billion drop in currency revaluation gains compared to last year.
Net interest income almost doubled, rising from N106.2 billion in the previous year to N207.4 billion by June 2025. The yield on earning assets improved to 20.2 per cent, leading to a net interest margin of 9.1 per cent, up from 6.3 per cent in the 2024 financial year.
The Group’s digital business—payments, lending, and wealth services—grew strongly. Digital revenues increased by 60 per cent year-on-year, rising from N46 billion in June 2024 to N73.6 billion in June 2025. Digital services now account for 13.9 per cent of total earnings.
Operating expenses rose by 46.1 per cent to N153.2 billion. The increase was due to higher personnel costs, regulatory expenses, technology costs, and general inflationary pressures. Despite this, cost-to-income ratio improved to 57 per cent at the end of June 2025, compared to 59.9 per cent recorded at the end of 2024.
Net impairment losses on financial assets grew significantly to N36.2 billion on a quarterly basis, following FCMB Group’s banking subsidiary exit from the Central Bank of Nigeria’s loan forbearance programme. This led to a rise in the cost of risk to 2.8 per cent, up from 1.8 per cent in the 2024 financial year.
After tax, profit increased by 23 per cent year-on-year, closing at N73.4 billion.
Each business division contributed to overall performance. Consumer Finance reported a profit before tax growth of 54.5 per cent, Banking Group reported a profit before tax growth of 41.3 per cent, and Investment Management recorded a 10 per cent growth. Investment Banking recorded a 48.9 per cent decline due to an exceptional one-time gain from a divestment in the previous year. In terms of contribution to Group’s PBT, the Banking Group accounted for 82 per cent, Consumer Finance for 11.6 per cent, Investment Management for 4.8 per cent, and Investment Banking for 1.4 per cent.
The Group’s balance sheet also showed improvement. Total assets increased by 6.9 per cent to N7.54 trillion, up from N7.05 trillion as of December 2024. Loans and advances grew modestly by 1.1 per cent to N2.38 trillion, impacted by currency revaluation, loan write-offs and concentrated paydowns, while customer deposits rose by 5.6 per cent to N4.55 trillion. This growth was supported by a stronger mix of low-cost deposits, which now account for 69.3 per cent of total deposits, up from 57.5 per cent at year-end 2024.
Assets under management increased by 15.5 per cent, reaching N1.58 trillion, compared to N1.37 trillion in December 2024. FCMB’s investment banking business, which includes advisory services and capital market transactions, recorded a significant increase in capital raised for its clients —growing by over 600 per cent to N2.97 trillion.
The Group also reported improved balance sheet efficiency. A more favourable deposit mix and better deployment of recently raised capital helped reduce funding costs for the second consecutive quarter. As a result, the net interest margin rose from 7.9 per cent in the first quarter to 10.1 per cent in the second quarter of 2025, contributing to the 9.1 per cent margin for the half-year. Management expressed confidence in sustaining this trend and exceeding its full-year NIM guidance.
Following its N144.6 billion public capital raise in 2024, FCMB confirmed that the Central Bank of Nigeria has completed verification of the second phase of the programme—a N22.5 billion mandatory convertible note expected to increase the number of issued shares to approximately 42.8 billion. Subsequent phases of the capital programme are ongoing and aim to ensure First City Monument Bank meets the new minimum capital requirement to retain its international banking license.
FCMB Group remains focused on improving operational efficiency, expanding its digital and retail business, and continuing its strong earnings momentum through the second half of the year.
