Unity Bank counters reports, says recapitalisation target already met

Unity Bank Plc has dismissed reports suggesting it has failed to meet the recapitalisation requirements set by the Central Bank of Nigeria, stating that its ongoing merger with Providus Bank has already positioned it above the regulatory threshold.

In a clarification issued on Monday, the bank explained that the apex bank had approved its proposed merger with Providus Bank as part of efforts to comply with the recapitalisation framework.

The approval, it noted, included a key financial accommodation to support the transaction.

According to the statement, the financial support has since been converted into Tier-1 capital, significantly boosting the combined capital base of both institutions beyond the ₦200 billion minimum required for banks with a national licence.

Unity Bank further disclosed that the merger process is in its final stages, having secured approvals from the Central Bank of Nigeria, shareholders of both banks, and the Securities and Exchange Commission, alongside other relevant regulatory bodies.

The bank added that integration activities between Unity Bank and Providus Bank are already underway, while final court sanction is expected in the coming days, ahead of the March 31 deadline set by the regulator for the recapitalisation exercise.

It urged stakeholders and the public to rely on verified information, noting the sensitivity of the transaction at its current stage.

The clarification comes amid heightened scrutiny of Nigerian banks’ compliance with the recapitalisation directive introduced by the Central Bank of Nigeria to strengthen the country’s financial system.