Providus, Unity Banks Merger Sealed as Integration Progresses

Nume Ekeghe

The proposed merger between Unity Bank Plc and Providus Bank Limited is steadily moving towards completion, following shareholder approval and strong regulatory backing.

Unity Bank, in a statement, said following the recently held Court-Ordered Meeting and endorsement, the merger and business combination between Unity Bank Plc and Providus Bank Limited remained firmly on course.

Last year, Central Bank of Nigeria (CBN) backed the merger between the two lenders, with a pivotal financial accommodation to support the transaction. The merger also received a further boost with a “no objection” nod from Securities and Exchange Commission (SEC).

The development positions the combined entity among the 21 banks that have satisfied the apex bank’s new capital threshold for national banking operations.

Through the proposed merger, the combined capital base of Unity Bank and Providus Bank exceeds N200 billion, which is the minimum requirement to retain a national banking licence under CBN’s recapitalisation framework. The transaction marks a significant milestone in strengthening the financial stability and long-term competitiveness of the enlarged institution.

Following CBN’s approval, shareholders of both banks overwhelmingly endorsed the merger at their respective Extraordinary General Meetings held in September 2025, where the merger was formally adopted.

The transaction had since progressed with additional regulatory clearances from SEC and other relevant authorities. Integration activities between the two institutions are currently underway, with the final court sanction expected to conclude the process.

Managing Director and Chief Executive Officer of Unity Bank, Ebenezer Kolawole, described the development as a defining moment for the institution, adding that the complementary strengths and unique advantages of the Unity Bank and Providus Bank merger place the new entity on a strong footing to create and leverage opportunities in the market.

Kolawole stated, “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.”

The bank further clarified that, contrary to reports in certain sections of the media suggesting that the merger process had stalled, the transaction remained firmly on track.

The necessary regulatory steps had been completed, with a few other steps only a matter of formality.