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ARISE Business Analyst Chika Mbonu has described the Supreme Court ruling on the Providus Bank and Unity Bank merger as a landmark decision that finally removes all legal uncertainty surrounding the transaction.
Speaking during an interview on ARISE News, Mbonu said the judgment conclusively settled all disputes over the merger and provided clarity for shareholders, customers, and regulators.
“The Supreme Court ruling ends uncertainty over the Providus-Unity Bank merger,” he said.
According to Mbonu, the Supreme Court not only dismissed the outstanding legal challenges but also affirmed the legality of the merger arrangement.
“The merger is fully legal, final and irreversible now,” he stated.
He said that the court directed that all Unity Bank assets be transferred to Providus Bank and that the transaction be completed within ten days.
“The Supreme Court ruled that this must be completed within ten days,” he said.
Mbonu explained that the decision represents one of the most significant banking consolidation developments since the merger between Access Bank and Diamond Bank.
“It is one of the most important banking consolidation transactions since 2019,” he stated.
According to him, the merger is also closely linked to the Central Bank of Nigeria’s recapitalisation programme introduced in 2024.
“It is one of the first major transactions linked to the CBN recapitalisation programme,” he said.
Mbonu recalled that the CBN approved the merger plan in 2024 and provided support to facilitate the transaction.
“The CBN approved the merger plan,” he stated.
He explained that all required approvals, including those from shareholders, regulators, and relevant authorities, had already been secured before the legal disputes emerged.
“All the approvals necessary were obtained,” he said.
According to Mbonu, the merger offers strategic benefits to both institutions.
He described Providus Bank as a technologically strong institution seeking a broader national footprint.
“They needed to scale up quickly,” he stated.
Mbonu said that the merger immediately provides Providus Bank access to more than 200 branches nationwide.
“The merger gave Providus Bank more than 200 branches nationwide,” he said.
He also explained that Unity Bank stood to benefit through stronger capitalisation, improved technology, and greater competitiveness.
“Unity Bank needed stronger capabilities,” he stated.
According to Mbonu, the combined institution will have a stronger capital base, larger lending capacity, and enhanced ability to finance businesses and economic activities.
“They can give bigger loans and support bigger projects,” he said.
He added that customers are expected to benefit from improved banking services, expanded branch networks, and enhanced digital platforms.
“Customers will have better technology and more branches,” he stated.
Mbonu emphasized that the merger aligns with the broader objective of creating stronger banks capable of supporting Nigeria’s economic growth.
“This is one of the things that needed to happen,” he said.
Mbonu concluded that the Supreme Court’s decision has finally cleared the way for the Providus-Unity Bank merger, paving the path for a stronger financial institution with greater capital strength, wider national reach, and improved capacity to support businesses and customers across Nigeria.
Ojo Triumph
