Unity, Providus Bank Merger Hedges on as Shareholders and Regulators Close Ranks

 

Unity Bank and Providus Bank merger Recieves massive backing after shareholder approval and regulatory clearances, boosting capital base above ₦200bn.

Nigeria’s banking consolidation wave is quietly gaining speed. The proposed merger between Unity Bank and Providus Bank is now moving into its final stretch, backed by shareholders and regulators alike.

The merger between Unity Bank Plc and Providus Bank Limited has received strong institutional backing, signaling confidence in the restructuring strategy.

The transaction has secured full approval from the Central Bank of Nigeria and a formal “no objection” from the Securities and Exchange Commission, positioning it as a compliant response to the apex bank’s recapitalisation directive.

With a combined capital base now exceeding ₦200 billion, the merged entity comfortably surpasses the minimum requirement for retaining a national banking licence under the current recapitalisation framework. Analysts view this as a strategic strengthening of capital buffers at a time when regulatory thresholds are tightening.

Shareholders of both institutions endorsed the scheme during Extraordinary General Meetings held in September 2025. Integration processes are reportedly ongoing, with final court sanction expected to complete the legal formalities.

Managing Director and Chief Executive Officer of Unity Bank, Ebenezer Kolawole, described the development as transformational. According to him, the merger enhances not only capital adequacy but also operational scale and competitive positioning within Nigeria’s evolving financial ecosystem.

The banks also dismissed suggestions of delay, clarifying that procedural steps remaining are largely technical. Once concluded, the combined institution is expected to expand its footprint, particularly in retail and SME banking — areas considered vital to economic growth.

As recapitalisation pressures reshape the banking landscape, the Unity–Providus consolidation reflects a broader recalibration within Nigeria’s financial sector. If executed efficiently, the merger could mark a strategic pivot toward resilience, scale, and long-term competitiveness.