The proposed merger between Unity Bank Plc and Providus Bank Limited has moved into its final phase, with integration activities underway and full regulatory backing secured.
The development follows a Court-Ordered Meeting and overwhelming shareholder endorsement of the scheme of merger, positioning the combined institution to meet recapitalisation requirements within the timeline set by the Central Bank of Nigeria (CBN).
Analysts reviewing the ongoing recapitalisation programme say the regulatory approvals and shareholder support represent critical milestones in satisfying the new capital thresholds for national banking operations.
The CBN had earlier backed the transaction with a pivotal financial accommodation to support the merger. The deal also received a “no objection” from the Securities and Exchange Commission (SEC), alongside other necessary clearances.
The approvals form part of broader regulatory efforts to strengthen the resilience of Nigeria’s banking system, reinforce capital adequacy across the sector, and mitigate potential systemic risks.
With a combined capital base exceeding N200 billion — the minimum requirement to retain a national banking licence under the CBN’s recapitalisation framework — the enlarged entity is now among the 21 banks that have satisfied the apex bank’s new capital threshold for national operations.
Shareholders of both banks formally adopted the scheme of merger at separate Extraordinary General Meetings held in September 2025. Since then, the transaction has progressed through additional regulatory stages, with final court sanction expected to conclude the process.
Managing Director and Chief Executive Officer of Unity Bank, Ebenezer Kolawole, described the merger as transformative for the institution.
“This milestone underscores our commitment to building a stronger, more resilient bank that can deliver greater value to our customers and stakeholders.
The merger with Providus Bank significantly enhances our capital base, operational capacity, and strategic positioning. We are confident that the combined institution will be better equipped to support economic growth and deliver innovative financial solutions across Nigeria,” he said.
The bank also dismissed reports in some sections of the media suggesting that the merger process had stalled, maintaining that the transaction remains firmly on track. According to the statement, all necessary regulatory steps have been completed, with the remaining procedures described as largely formalities.
When finalised, the Unity-Providus merger is expected to create a stronger, more competitive and customer-focused financial institution with the scale, innovation and reach to redefine retail and SME banking in Nigeria.
Boluwatife Enome
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