The proposed merger between Unity Bank Plc and Providus Bank Limited has reached an advanced stage, following overwhelming shareholder approval at court-ordered meetings and key regulatory endorsements.
Analysts monitoring the ongoing banking sector recapitalisation programme say the merger represents a major milestone in meeting the new capital requirements within the stipulated timeline.
The transaction received backing from the Central Bank of Nigeria (CBN), including a pivotal financial accommodation to facilitate the deal. It also secured a “no objection” approval from the Securities and Exchange Commission (SEC).
The regulatory clearances align with broader efforts to strengthen the resilience of Nigeria’s banking sector, reinforce capital adequacy, and mitigate potential systemic risks.
With a combined capital base exceeding N200 billion, the enlarged entity will meet the CBN’s minimum requirement for a national banking licence under its recapitalisation framework.
The development positions the merged institution among the 21 banks that have satisfied the apex bank’s new capital threshold for national operations.
Shareholders of both lenders formally adopted the scheme of merger at their respective Extraordinary General Meetings held in September 2025.
Since then, the transaction has progressed with additional regulatory approvals, while integration activities are currently underway. Final court sanction is expected to conclude the process.
Managing Director and Chief Executive Officer of Unity Bank, Ebenezer Kolawole, described the merger as a defining moment for the institution.
He said the complementary strengths of both banks would position the enlarged entity to seize new market opportunities.
“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,” Kolawole said.
The bank also dismissed reports suggesting the merger process had stalled, clarifying that all critical regulatory steps have been completed, with remaining procedures largely formalities.
Upon completion, the Unity–Providus merger is expected to create a stronger, more competitive and customer-focused financial institution with enhanced scale, innovation and reach to redefine retail and SME banking in Nigeria.
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