Unity Bank Providus merger moves forward after CBN and SEC approvals, boosting capital base and consolidating Nigeria’s banking sector

Unity Bank Plc has confirmed that its planned merger with Providus Bank Limited remains on track following approvals from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).

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The approvals, together with court and shareholder endorsements, form part of the process to meet the apex bank’s recapitalisation requirements.

In a statement on Wednesday, the lender emphasised that regulatory support, including financial backing from the CBN and a “no objection” from the SEC, underpins broader efforts to strengthen Nigeria’s banking system, reinforce capital adequacy, and mitigate potential systemic risks.

Once completed, the merged entity will boast a capital base exceeding N200 billion, positioning it among the 21 banks that have met the CBN’s new threshold for national banking licences.

Integration activities between the two banks are already underway, with final court sanction expected to formalise the transaction.

Ebenezer Kolawole, Managing Director and CEO of Unity Bank, described the merger as a defining moment.

“This milestone underscores our commitment to building a stronger, more resilient bank that can deliver greater value to our customers and stakeholders,” Kolawole said.

He added that the merger enhances the institution’s operational capacity, strategic positioning, and ability to support economic growth.

Addressing speculation about delays, the bank stressed that all regulatory approvals have been secured, with remaining steps largely procedural.

Shareholders had already approved the merger on 26 September 2025.

Under the scheme, all Unity Bank assets, liabilities, and undertakings will transfer to Providus Bank, and all legal proceedings involving Unity Bank will continue under Providus Bank after court sanction.

Unity Bank shareholders will receive either N3.18 per share or 18 ordinary shares of Providus Bank for every 17 Unity Bank shares previously held.

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Industry analysts note that the transaction, now in its final phase, is expected to consolidate the Nigerian banking sector further, creating a stronger institution capable of competing more effectively in the national market.