Unity and Providus Banks: Paving the Way to a New Financial Era

Unity and Providus Banks: Paving the Way to a New Financial Era

The court-ordered hearing received widespread approval from shareholders, leading to steady progress on the merger between Unity Bank Plc and Providus Bank Limited, with integration efforts now officially in progress.

Analysts say the combination, supported by regulatory backing and shareholder endorsement, marks a crucial milestone in meeting recapitalisation requirements and strengthening the banks’ resilience.

The Central Bank of Nigeria (CBN) had earlier endorsed the merger, providing key financial support for the transaction, while the Securities and Exchange Commission (SEC) issued a “no objection” approval. The twin regulatory clearances are part of broader efforts to bolster Nigeria’s banking sector, ensuring capital adequacy and reducing systemic risks.

Under the proposed merger, the combined entity’s capital base surpasses N200 billion, meeting the CBN’s minimum requirement for a national banking licence. This positions the new institution among the 21 banks that currently satisfy the apex bank’s enhanced capital threshold.

Following CBN approval, shareholders of both banks endorsed the scheme at separate Extraordinary General Meetings in September 2025. With SEC clearance secured and court sanction pending, the merger has entered its integration phase, bringing together the operational strengths of both banks.

Ebenezer Kolawole, Managing Director and CEO of Unity Bank, described the development as “a defining moment,” noting that the merger leverages complementary strengths to create a financially robust institution capable of supporting Nigeria’s economic growth.

“This milestone underscores our commitment to building a stronger, more resilient bank that delivers greater value to customers and stakeholders. The merger with Providus Bank enhances our capital base, operational capacity, and strategic positioning,” Kolawole said.

The bank also addressed media reports suggesting delays, clarifying that the merger remains on track and that outstanding formalities are procedural.

When concluded, the Unity-Providus combination is expected to form a larger, more competitive, and customer-focused bank, with enhanced scale, innovation, and reach to redefine retail and SME banking in Nigeria.