Tony Elumelu, UBA executives spend $19 million on travel in 2024

Key Points

• Tony Elumelu and senior staff spent $19 million on business travels in 2024, more than doubling 2023’s $9.3 million.
• UBA’s expenses surged to $682 million in 2024, driven by rising staff costs and depreciation, despite double-digit profit growth.
• The bank’s total assets grew from $13.4 billion to $20 billion in 2024, while shareholders’ equity climbed to $2.23 billion.

Nigerian businessman Tony Elumelu, along with other executive directors and senior staff of United Bank for Africa (UBA) Plc, spent $19 million on business travels in 2024, according to the bank’s recently published financial statements.

The report shows that Elumelu, four independent non-executive directors, five non-executive directors, and other executives and senior staff collectively spent N29.13 billion ($19 million) on travel, more than doubling the N14.2 billion ($9.3 million) spent in 2023.

Lavish spending by Nigerian banks grows

This expense was part of the N682.9 billion ($445 million) classified under “other operating expenses” in 2024—an increase from N372.8 billion ($242.7 million) the previous year. The rising costs have weighed on profitability, limiting returns that would have otherwise gone to shareholders and adding to concerns about uncontrolled spending.

The surge in travel expenses comes amid growing criticism of Nigerian banks for their lavish spending, including private jet purchases. Reports indicate that four banks have collectively spent over $500 million on nine private jets. Critics argue that such extravagance erodes public trust in financial institutions and diverts resources from critical economic sectors.

UBA’s operating costs surge past N1 trillion

UBA, one of Nigeria’s leading lenders, operates in 24 countries across four continents, including major hubs in the UK, the U.S., France, and the UAE. Under Elumelu’s leadership—he holds a 6.86 percent stake in the bank, amounting to 2.35 billion shares—UBA has struggled to rein in costs. The group’s operating expenses, which include employee benefits, depreciation, amortization, and other costs, soared past N1 trillion ($650 million) in 2024.

Operating expenses jumped from N592.21 billion ($385.5 million) in 2023 to N1.046 trillion ($682 million) in 2024, driven by rising staff costs and depreciation. Despite this, UBA’s profit grew by double digits, increasing from N607.7 billion ($396 million) in 2023 to N766.6 billion ($500 million) in 2024, helped by other revenue streams.

Assets expand despite rising banking costs

Despite the rising costs, UBA expanded its balance sheet significantly. The bank’s total assets increased from N20.6 trillion ($13.4 billion) at the end of 2023 to N30.3 trillion ($20 billion) by the end of 2024. Meanwhile, total liabilities rose from N18.6 trillion ($12 billion) to N26.9 trillion ($17.5 billion). 

Shareholders’ equity also saw a boost, climbing from N2.03 trillion ($1.32 billion) to N3.42 trillion ($2.23 billion), while retained earnings grew from N920 billion ($600 million) to N1.42 trillion ($924.5 million).