Providus-Unity Deal: Safeguarding Value, Restoring Trust

The Providus-Unity deal signals more than a merger; it is a bold step to protect shareholder value, restore confidence, and reshape the future of Nigeria’s banking landscape, writes Omolabake Fasogbon

The business combination between Providus Bank and Unity Bank marks a significant milestone in Nigeria’s financial sector, coming at a time when investor confidence and shareholder value have been under intense scrutiny.

In Nigeria’s banking environment, where institutions under the regulation of the Central Bank of Nigeria (CBN) are faced with a recapitalisation hurdle with a March 31, 2026, deadline, this merger represents not just the unification of assets but also a strategic step towards creating a stronger, more competitive institution.

It is a move that signals stability, renews optimism, and sends a reassuring message to stakeholders that value preservation remains a top priority.

For Unity Bank, the deal comes as a lifeline, providing an opportunity to overcome years of structural and balance sheet challenges that had weighed heavily on its operations. For Providus Bank, it is a chance to scale further, expand reach, and leverage synergies that will position the combined entity as a force to reckon with in Nigeria’s fast-evolving banking space. Together, both banks have an opportunity to chart a new course defined by innovation, efficiency, and trust, setting a standard for future industry consolidations.

Beyond the immediate financial benefits, the Providus-Unity deal represents a test of the industry’s ability to inspire confidence. By prioritising transparency, safeguarding shareholder interests, and building a culture of accountability, the new entity is expected to play a central role in deepening financial inclusion and restoring public confidence in Nigeria’s banking system. The success of this merger could well determine how future business combinations are perceived—not merely as survival strategies, but as platforms for lasting value creation.

To guarantee that success, yesterday, shareholders and boards of Providus Bank and Unity Bank overwhelmingly approved a business combination of the two institutions at a court-ordered Extraordinary General Meeting, marking a significant moment for Nigeria’s banking sector.

In a joint statement, both banks expressed deep appreciation to the CBN for its foresight, determination and steadfast support of a stronger financial system. They noted that the regulator’s backing of this transaction underscores its commitment to resilience, stability, and customer confidence.

“This regulatory support is not only shaping healthier banks, but also inspiring the confidence of businesses, investors, and everyday Nigerians that our financial system is ready to serve as a cornerstone for sustainable growth,” the statement noted.

The vote was also a signal to the markets, to regulators, and to the wider public that Nigeria’s banking sector remains robust and forward-looking.

In affirming this merger, the statement said, shareholders have helped to reinforce the confidence that underpins economic stability.

“It is a statement that Nigerian banks are prepared to adapt, consolidate, and grow in line with the Central Bank of Nigeria’s vision of a stronger and more resilient financial system—and ultimately, its aspiration to support Nigeria’s transition into a trillion-dollar economy.”

The merged institution will launch with a solid capital base, a nationwide footprint of approximately 230 branches, and the capacity to serve businesses, households, and government agencies across the country. Unity Bank brings a proud legacy of faithful service to customers, while Providus adds a reputation for innovation and excellent digital banking platforms, creating a combined bank capable of competing at the highest level.

“The enlarged bank will provide the backbone for businesses to thrive and communities to prosper”, the statement assured.

It also noted that the merger of the two institutions, when completed, would secure jobs, protect livelihoods, and create new opportunities within a bigger, stronger, and future-oriented institution. “The success of this merger rests not only on systems and balance sheets but on people—and their contribution will be safeguarded and celebrated.”

“This historic transaction is not simply about numbers; it is about confidence in the Nigeria financial system. By combining Providus Bank and Unity Bank, we are creating an institution of scale and substance- that will give confidence to customers, strength to the financial system and create opportunity for our people,” the statement added.

In addition, the merger ushers in a new chapter – a bank that is bigger in ambition, broader in reach, and stronger in capacity. It will embody the values of innovation, empathetic relationship management, customer focus, and integrity.

With enhanced technology platforms, deeper capital strength, and a commitment to customer service, the enlarged bank will stand as both a guardian of stability and a catalyst for growth in Nigeria’s journey toward a trillion-dollar economy.

Prior to this meeting, the Asset Management Corporation of Nigeria (AMCON) had on Thursday offloaded 34 per cent of its stake in Unity Bank Plc to Providus Bank. The move had strengthened the business combination deal between both banks. In all, 34 per cent total equity stake in Unity Bank was transacted through a crossed deal on the floor of the Nigerian Exchange Limited (NGX) to the preferred bidder, 24 hours ahead of their Court-Ordered Meeting to approve the scheme of merger.

The transaction was completed involving four billion Unity Bank shares at N1.66 per share, amounting to over N6.5 billion in value.  A total of three deals were carried out on Unity Bank shares on the Exchange on September 25, 2025.

Providus Bank began operations in June 2017. It is licensed by the Central Bank of Nigeria to provide banking services to individuals and businesses. The bank has a strong IT infrastructure and digital channels which it deploys to provide exceptional service to our customers so they can achieve their objectives.

Providus Bank is an innovative financial institution that provides personal, private, corporate, commercial and digital banking products and solutions.

Its tailored financial services delivery includes: Business Advisory, Portfolio Management, Personalised Relationship Management, Fast-tracked Service delivery and Self-service solutions. Providus Bank competitive advantage in Private, Institutional, Business and Personal Banking is driven by the philosophy to create support and value for Institutions, Agencies, SMEs and HNIs.

Its business development strategy also focuses on developing expertise and collaborating to improve the non-oil (emerging) sector of the Nigerian Economy, which includes but not limited to Agriculture, Mining, Hospitality, E-commerce, and Art & Entertainment.

Providus Bank believes that the New World of Fast, Smart, Personal, and Borderless banking relationship is here. We are therefore inspired by our Future Forward Banking ethos to make life (at work and leisure) more exciting for our partners with the use of cutting-edge technology that delivers best-in-class customer satisfaction.

In less than 10 years, Providus Bank has emerged as one of the fastest-growing financial institutions in the country.

Through this merger, Providus aims to transform from a niche player into a national bank, leveraging Unity Bank’s over 211-branch network spread across all 36 states and the FCT.

The move aligns with Providus’ broader strategy to deepen its retail presence and diversify its customer base.

Additionally, Providus Bank would significantly benefit from scale in retail banking as it would expand its footprint from a largely digital operation to a full-fledged national player.

It also brings in a strong SME lending pipeline, especially in agriculture, mining, e-commerce, hospitality, and entertainment sectors, which both banks already support.

Providus plans to integrate its technology stack into Unity Bank’s branch network, enhancing service delivery and cost efficiency. The bank believes the combined entity will unlock new value across its retail, SME, and digital channels.

Also, Providus Bank was recently named one of the best workplaces in banking in 2025 by the Great Place to Work (GPTW), a global leader in workplace culture. The recognition highlights the bank’s efforts to create an environment where employees feel supported, engaged and motivated.

According to GPTW, the award was based largely on staff feedback, which has become an increasingly important measure of how organisations are adapting to shifting workforce expectations.

Reacting to the feat, Managing Director/CEO, Providus Bank, Walter Akpani, had attributed it to the quality of staff at the financial institution.

“Our people are at the very heart of what we do. This recognition is a tribute to their hard work, creativity and dedication,” he noted.

Also, the Group Head of Human Resources at ProvidusBank, Kingsley Ogirri, said the recognition reflected the experiences of employees themselves.

“It is proof that the policies and programmes we have put in place are making a difference, from opportunities for growth, to wellness initiatives, to creating a space where everyone feels valued,” he added.

Ultimately, the Providus-Unity deal represents a pivotal moment for the financial sector, not just in terms of numbers on a balance sheet but in rebuilding trust and charting a new course for sustainable growth. By prioritising transparency, safeguarding investor interests, and strengthening institutional resilience, the transaction is expected to inspire broader confidence in Nigeria’s banking system and serve as a model for how strategic partnerships can unlock value, stabilise fragile institutions, and reinforce the foundations of long-term prosperity.