Unity, Providus Bank merger advances after regulatory, shareholders’ approvals

The proposed merger between Unity Bank Plc and Providus Bank Limited is progressing steadily following regulatory clearances and strong shareholder backing, according to a statement released on February 18.

The banks said the business combination remains on course after a court-ordered meeting and overwhelming endorsement by shareholders, with integration activities already underway and final court sanction expected to complete the process.

Analysts reviewing the recapitalisation programme noted that regulatory support and investor approval represent key milestones toward meeting capital requirements within the stipulated timeline.

The merger received backing from the Central Bank of Nigeria, which provided financial accommodation to support the transaction, while the Securities and Exchange Commission Nigeria issued a “no objection” clearance. The approvals are part of broader efforts to strengthen Nigeria’s banking sector, improve capital adequacy and reduce systemic risks.

With the combination, the enlarged institution’s capital base is expected to exceed ₦200 billion — the minimum threshold required to retain a national banking licence under the central bank’s recapitalisation framework. The development places the combined entity among lenders that have met the new capital benchmark for national operations.

Shareholders of both banks had formally adopted the merger scheme at Extraordinary General Meetings held in September 2025, paving the way for subsequent regulatory approvals and the current integration phase.

Managing Director and Chief Executive Officer of Unity Bank, Ebenezer Kolawole, described the merger as a defining moment, saying the complementary strengths of both institutions would enhance capital capacity, operational efficiency and market positioning.

He added that the combined bank would be better placed to support economic growth and deliver innovative financial solutions to customers across Nigeria.

The bank also dismissed media reports suggesting that the merger had stalled, maintaining that required regulatory steps had been completed and remaining procedures were largely procedural.

When finalised, the Unity-Providus merger is expected to produce a stronger, more competitive and customer-focused financial institution with greater scale to serve retail and small- and medium-sized enterprise customers nationwide.