The proposed merger between Unity Bank Plc and Providus Bank Limited has reached its concluding phase, with both institutions awaiting final approval from the Federal High Court to complete the transaction.
The combination forms part of a broader strategy by both lenders to comply with the revised recapitalisation framework introduced by the Central Bank of Nigeria (CBN), which requires commercial banks to strengthen their capital base ahead of the March 31, 2026 deadline.
According to a statement issued by Unity Bank, the merged entity’s capital base has surpassed the ₦200 billion threshold required to retain a national banking licence under current CBN regulations.
Regulatory Approvals and Shareholder Backing
The merger has progressed through key regulatory and governance milestones. The CBN previously granted Approval-in-Principle for the transaction, alongside financial accommodation measures aimed at ensuring post-merger stability.
Shareholders overwhelmingly endorsed the scheme at a court-ordered Extraordinary General Meeting, where more than 99 per cent voted in favour of the deal. The Securities and Exchange Commission (SEC) subsequently issued a no-objection confirmation, validating the fairness and structure of the transaction.
In addition, the Asset Management Corporation of Nigeria (AMCON) divested its 34 per cent stake in Unity Bank to an existing shareholder, clearing a significant hurdle ahead of consolidation.
Integration and Rebranding Plans
While the final legal documentation awaits court sanction, operational integration between the two banks is already in progress. The enlarged institution is expected to operate under the name Providus-Unity Bank (PUB).
The merger is designed to combine Unity Bank’s established retail presence, particularly in northern Nigeria, with Providus Bank’s technology-driven banking model and digital infrastructure.
Unity Bank’s Managing Director and Chief Executive Officer, Ebenezer Kolawole, described the development as a transformational step that strengthens capital adequacy, operational resilience, and long-term competitiveness.
Financial Outlook and Market Positioning
Upon completion, Providus Bank will remain the surviving legal entity, absorbing all assets, liabilities, and contractual obligations of Unity Bank. Unity Bank’s share capital will be cancelled without winding up, effectively dissolving the institution as a separate entity.
The combined bank is projected to emerge among Nigeria’s largest lenders by asset size, with an estimated balance sheet of approximately ₦5.3 trillion and a customer base exceeding 3.6 million.
Under the merger terms, Unity Bank shareholders are offered either a cash consideration of ₦3.18 per share or an equity swap arrangement based on a defined exchange ratio.
As the recapitalisation deadline approaches, the Unity–Providus transaction reflects a broader consolidation trend within Nigeria’s banking sector. By exceeding the ₦200 billion capital benchmark, the new entity is positioned to compete more effectively within the national banking landscape while expanding support for small and medium-sized enterprises and the digital economy.
Final court approval is expected in the coming weeks, marking one of the most significant mid-tier banking consolidations in recent years.
