Unity Bank–Providus Bank Merger on Track After Shareholders’ Approval, Meets CBN N200bn Capital Requirement

Unity Bank–Providus Bank merger is currently on track after Shareholders’ approval and meeting of CBN N200bn Capital Requirement.

NewsOnline Nigeria reports that the proposed merger between Unity Bank Plc and Providus Bank Limited remains firmly on course following a court-ordered meeting and overwhelming shareholder endorsement.

Financial analysts monitoring Nigeria’s banking recapitalisation programme say the strong regulatory backing and investor support mark critical milestones toward meeting capital requirements within the stipulated timeline.

The merger received significant support from the Central Bank of Nigeria, which provided a pivotal financial accommodation to facilitate the transaction. The deal was further strengthened by a “no objection” approval from the Securities and Exchange Commission, alongside other relevant regulatory clearances.

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These approvals align with broader efforts by regulators to reinforce capital adequacy, enhance the resilience of Nigeria’s banking sector, and reduce systemic risks.

Meets New CBN Capital Threshold

 

With a combined capital base exceeding N200 billion, the enlarged entity is positioned among the 21 banks that have met the apex bank’s revised minimum capital requirement for national banking operations under its recapitalisation framework.

The merger represents a significant step toward strengthening financial stability and enhancing the long-term competitiveness of the combined institution.

Shareholders of both banks formally adopted the scheme of merger at their respective Extraordinary General Meetings held in September 2025. Following the meetings, integration processes commenced, with final court sanction expected to conclude the transaction.

Management Reaffirms Commitment

Managing Director and Chief Executive Officer of Unity Bank, Ebenezer Kolawole, described the merger as a defining milestone.

“This underscores our commitment to building a stronger, more resilient bank capable of delivering greater value to customers and stakeholders. The merger significantly enhances our capital base, operational capacity, and strategic positioning. We are confident the combined institution will better support economic growth and provide innovative financial solutions across Nigeria,” he said.

The bank also dismissed reports suggesting the merger had stalled, clarifying that all critical regulatory steps have been completed, with remaining processes largely procedural.

Stronger Retail and SME Banking Focus

Upon completion, the Unity Bank–Providus Bank merger is expected to create a more competitive and customer-focused financial institution. The enlarged entity aims to leverage its scale, innovation capacity, and expanded reach to strengthen retail and SME banking services nationwide.

Industry observers note that the consolidation signals continued transformation within Nigeria’s banking sector as institutions reposition to meet evolving regulatory and market demands.