After Shareholders’ Approval, Unity, Providus Banks Conclude Merger

The proposed merger between Unity Bank Plc and Providus Bank Limited has effectively been sealed, following shareholder approval and the completion of key regulatory milestones, signalling the emergence of a stronger national banking player under the ongoing recapitalisation drive.

The two banks confirmed that integration activities are already underway after the scheme of merger was adopted at their respective Extraordinary General Meetings in September 2025.

The transaction, which has received regulatory backing from the Central Bank of Nigeria (CBN) and a no-objection clearance from the Securities and Exchange Commission (SEC), now awaits final court sanction to conclude the process.

Under the arrangement, the enlarged institution said they have a combined capital base exceeding N200 billion, meeting the minimum threshold required to retain a national banking licence under the apex bank’s recapitalisation framework.

Analysts say this positions the new entity among the 21 banks that have met the revised capital requirement within the stipulated timeline.

The managing director and chief executive officer of Unity Bank, Ebenezer Kolawole, described the development as a defining moment for the institution, noting that the complementary strengths of both lenders would significantly enhance their market position.

“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 banks dismissed reports suggesting that the merger process had stalled, clarifying that all critical regulatory steps had been completed, with only procedural formalities outstanding.

Market watchers believe the transaction reflects the broader objective of the recapitalisation programme to fortify the financial system, deepen capital buffers and reduce systemic vulnerabilities.

According to analysts, the combination of regulatory backing and strong shareholder endorsement represents the most crucial hurdle in meeting the new capital requirements.

The apex bank had earlier thrown its weight behind the deal, including a pivotal financial accommodation to support the transaction, in what industry observers describe as a strategic move to consolidate balance sheets and strengthen confidence in the sector.