Unity–Providus Merger Nears Completion as Final Court Approval Looms
The proposed business combination between Unity Bank Plc and Providus Bank Limited has entered its final phase, following a court-ordered meeting and key regulatory endorsements.
With integration activities already underway, the merger is now awaiting final court sanction to formally conclude the process.
Here’s a detailed breakdown of what this means
Court-Ordered Meeting Signals Final Stretch
A recent court-ordered meeting was held as part of the statutory process required to complete the merger.
Such meetings are typically convened to:
• Secure formal shareholder approval
• Review the merger scheme
• Ensure compliance with corporate and regulatory requirements
With this stage completed, the transaction is now considered to be in its concluding phase.
Strong Regulatory Backing from CBN and SEC
The merger has received significant regulatory support.
The Central Bank of Nigeria backed the transaction and provided financial accommodation to support the deal.
Additionally, the Securities and Exchange Commission issued a “no objection” approval, further clearing regulatory hurdles.
These endorsements are critical milestones, particularly under Nigeria’s ongoing banking recapitalisation programme.
Meeting the New ₦200 Billion Capital Threshold
Under the CBN’s recapitalisation framework, banks must meet updated capital requirements to retain their operating licences.
For a national banking licence, the minimum capital base required is ₦200 billion.
Through the proposed merger, the combined capital base of Unity Bank and Providus Bank is estimated to have exceeded this ₦200 billion threshold.
This positions the enlarged institution among more than 20 banks that have satisfied the apex bank’s new capital benchmark.
Why the Merger Matters
Analysts say regulatory backing and shareholder approval are the most crucial milestones for banks seeking to meet recapitalisation deadlines within the stipulated timeline.
The merger is seen as:
• Strengthening financial stability
• Reinforcing capital adequacy
• Reducing systemic risk in the banking sector
• Enhancing long-term competitiveness
It also aligns with broader regulatory efforts to build a more resilient banking system.
Shareholders Already Gave the Green Light
Following CBN approval, shareholders of both banks endorsed the merger during their respective Extraordinary General Meetings held in September 2025.
At those meetings:
• The scheme of merger was adopted
• Shareholders voted in support of the combination
Since then, the transaction has progressed with additional regulatory clearances.
Integration Already Underway
Even before final court sanction, integration activities between the two banks have commenced.
This typically includes:
• Operational alignment
• Systems integration
• Brand and structural planning
• Harmonisation of processes
Final court approval is expected to formally complete the merger process.
Leadership Reaction: “A Defining Moment”
Managing Director and CEO of Unity Bank, Ebenezer Kolawole, described the merger as a defining moment for the institution.
He noted that the complementary strengths of both banks would:
• Enhance capital strength
• Improve operational capacity
• Strengthen strategic positioning
• Enable broader economic support
He expressed confidence that the combined institution would be better positioned to deliver innovative financial solutions across Nigeria.
Unity Bank also clarified that contrary to reports suggesting delays, the merger remains firmly on track, with all necessary regulatory steps completed.
Big Picture Takeaway
The Unity–Providus merger reflects a wider consolidation wave triggered by Nigeria’s recapitalisation drive.
If the final court sanction is secured as expected, the enlarged entity will:
• Exceed ₦200 billion in capital base
• Retain its national banking licence
• Strengthen resilience in a more demanding regulatory environment
The deal represents not just survival under new capital rules, but a strategic repositioning for growth in Nigeria’s evolving banking landscape.
The proposed business combination between Unity Bank Plc and Providus Bank Limited has entered its final phase, following a court-ordered meeting and key regulatory endorsements.
With integration activities already underway, the merger is now awaiting final court sanction to formally conclude the process.
Here’s a detailed breakdown of what this means
Court-Ordered Meeting Signals Final StretchA recent court-ordered meeting was held as part of the statutory process required to complete the merger.
Such meetings are typically convened to:
• Secure formal shareholder approval
• Review the merger scheme
• Ensure compliance with corporate and regulatory requirements
With this stage completed, the transaction is now considered to be in its concluding phase.
Strong Regulatory Backing from CBN and SECThe merger has received significant regulatory support.
The Central Bank of Nigeria backed the transaction and provided financial accommodation to support the deal.
Additionally, the Securities and Exchange Commission issued a “no objection” approval, further clearing regulatory hurdles.
These endorsements are critical milestones, particularly under Nigeria’s ongoing banking recapitalisation programme.
Meeting the New ₦200 Billion Capital ThresholdUnder the CBN’s recapitalisation framework, banks must meet updated capital requirements to retain their operating licences.
For a national banking licence, the minimum capital base required is ₦200 billion.
Through the proposed merger, the combined capital base of Unity Bank and Providus Bank is estimated to have exceeded this ₦200 billion threshold.
This positions the enlarged institution among more than 20 banks that have satisfied the apex bank’s new capital benchmark.
Why the Merger MattersAnalysts say regulatory backing and shareholder approval are the most crucial milestones for banks seeking to meet recapitalisation deadlines within the stipulated timeline.
The merger is seen as:
• Strengthening financial stability
• Reinforcing capital adequacy
• Reducing systemic risk in the banking sector
• Enhancing long-term competitiveness
It also aligns with broader regulatory efforts to build a more resilient banking system.
Shareholders Already Gave the Green LightFollowing CBN approval, shareholders of both banks endorsed the merger during their respective Extraordinary General Meetings held in September 2025.
At those meetings:
• The scheme of merger was adopted
• Shareholders voted in support of the combination
Since then, the transaction has progressed with additional regulatory clearances.
Integration Already UnderwayEven before final court sanction, integration activities between the two banks have commenced.
This typically includes:
• Operational alignment
• Systems integration
• Brand and structural planning
• Harmonisation of processes
Final court approval is expected to formally complete the merger process.
Leadership Reaction: “A Defining Moment”Managing Director and CEO of Unity Bank, Ebenezer Kolawole, described the merger as a defining moment for the institution.
He noted that the complementary strengths of both banks would:
• Enhance capital strength
• Improve operational capacity
• Strengthen strategic positioning
• Enable broader economic support
He expressed confidence that the combined institution would be better positioned to deliver innovative financial solutions across Nigeria.
Unity Bank also clarified that contrary to reports suggesting delays, the merger remains firmly on track, with all necessary regulatory steps completed.
Big Picture Takeaway
The Unity–Providus merger reflects a wider consolidation wave triggered by Nigeria’s recapitalisation drive.
If the final court sanction is secured as expected, the enlarged entity will:
• Exceed ₦200 billion in capital base
• Retain its national banking licence
• Strengthen resilience in a more demanding regulatory environment
The deal represents not just survival under new capital rules, but a strategic repositioning for growth in Nigeria’s evolving banking landscape.