The business combination of Unity Bank Plc and Providus Bank Limited may have progressed to its final stage following a recent court-ordered meeting and subsequent endorsement of the process.
Analysts appraising the ongoing recapitalisation programme believe that the regulatory backing and shareholders’ support for the merger are the most important milestones for meeting the recapitalisation requirements within the stipulated timeline.
The Central Bank of Nigeria (CBN) backed the merger between the two lenders, with financial accommodation to support the transaction.
The merger also received a further boost with a “no objection” nod from the Securities and Exchange Commission (SEC).
The regulatory approvals form part of broader efforts to strengthen the resilience of Nigeria’s banking system, reinforce capital adequacy across the sector and mitigate potential systemic risks.
The development positions the combined entity among over 2o banks that have satisfied the apex bank’s new capital threshold for banking operations.
Through the proposed merger, the combined capital base of Unity Bank and Providus Bank is estimated to have exceeded N200 billion, which is the minimum requirement to retain a national banking licence under the CBN’s recapitalisation framework.
The transaction marks a significant milestone in strengthening the financial stability and long-term competitiveness of the enlarged institution.
Following the CBN’s approval, shareholders of both banks endorsed the merger at their respective extraordinary general meetings held in September 2025, where the scheme of merger was adopted. The transaction has since progressed with additional regulatory clearances from the SEC and other relevant authorities.
Integration activities between the two institutions are underway, with the final court sanction expected to conclude the process.
Managing Director and Chief Executive Officer of Unity Bank, Ebenezer Kolawole, had described the development as a defining moment for the institution, adding that the complementary strengths and unique advantages of Unity Bank and Providus placed the expected new entity on a strong footing to create and leverage opportunities in the market.
“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 in a statement, clarified that contrary to reports that the merger process had stalled, the transaction remained firmly on track even as necessary regulatory steps have been completed.
