Unity and Providus Bank Merger Enters Final Stage Awaiting Court Sanction
Banking Sector Consolidation: Unity Bank to Dissolve into Providus After Court Approval
The proposed business combination between Unity Bank Plc and Providus Bank Limited has progressed to its concluding stage, with the entities currently awaiting final court sanction. The merger, which is a critical component of the banks' strategy to meet the Central Bank of Nigeria’s (CBN) revised recapitalisation requirements, has already secured major regulatory "no-objection" nods and overwhelming shareholder support.
According to a statement released by Unity Bank on Wednesday, February 18, 2026, the combined entity’s capital base is estimated to have exceeded the ₦200 billion threshold. This allows the emerging institution to retain a national banking licence under the CBN's current framework, which mandates a March 31, 2026, deadline for all commercial banks to shore up their capital.
Regulatory Backing and Shareholder Mandate
The merger follows an extensive period of due diligence and regulatory oversight. In August 2024, the CBN granted an Approval-in-Principle (AIP) for the deal, accompanied by a pivotal financial accommodation to support Unity Bank’s obligations and ensure the post-merger entity’s health.
Key milestones achieved to date include:
Shareholder Approval: At a court-ordered Extraordinary General Meeting (EGM) held in September 2025, over 99% of shareholders voted in favour of the scheme.
SEC Clearance: The Securities and Exchange Commission (SEC) issued a "no-objection" certificate, confirming the fairness of the transaction terms for all stakeholders.
AMCON Exit: The Asset Management Corporation of Nigeria (AMCON) successfully divested its 34% stake in Unity Bank to an existing shareholder, clearing the path for private equity consolidation.
Integration and "Providus-Unity Bank" (PUB)
While the final legal formalities are being processed at the Federal High Court, operational integration is already underway. The enlarged institution is expected to be rebranded as Providus-Unity Bank (PUB), combining Unity Bank’s established retail footprint in the northern markets with Providus Bank’s innovative digital infrastructure.
Ebenezer Kolawole, Managing Director and CEO of Unity Bank, described the progress as a "defining moment" for the Nigerian banking industry.
"This milestone underscores our commitment to building a stronger, more resilient bank that can deliver greater value to our customers and stakeholders. The merger significantly enhances our capital base, operational capacity, and strategic positioning," Kolawole stated.
Financial Impact and Future Outlook
The merger is set to create the 9th largest lender in Nigeria by assets, with a projected balance sheet of roughly ₦5.3 trillion and a customer base of over 3.6 million. Under the terms of the scheme, Unity Bank shareholders have the option to receive ₦3.18 per share in cash or an equity swap of 18 Providus shares for every 17 Unity shares held.
Upon the final court sanction, Unity Bank’s entire share capital will be cancelled, and the bank will be dissolved without winding up. Providus Bank Limited will serve as the surviving entity, retaining its certificate of incorporation while absorbing all assets, liabilities, and legal undertakings of Unity Bank.
As the March 2026 recapitalisation deadline approaches, the Unity-Providus merger serves as a blueprint for mid-tier consolidation in the Nigerian financial sector. By surpassing the ₦200 billion capital benchmark, the new entity is positioned to compete with tier-1 lenders while providing specialized support for SMEs and the burgeoning digital economy. The final court order is expected to be granted within the coming weeks, officially birthing one of the most significant post-consolidation banks in West Africa.
