Unity Bank–Providus Merger Surges Toward Completion As N200bn Capital Milestone Strengthens Nigeria’s Banking Landscape

Following a court-ordered meeting and overwhelming shareholder endorsement, the proposed merger between Unity Bank Plc and Providus Bank Limited is progressing steadily, with analysts describing the transaction as one of the most significant consolidation moves in Nigeria’s current banking recapitalisation cycle.

Market observers note that strong regulatory backing and decisive shareholder approval have marked critical milestones in meeting the recapitalisation requirements within the timeline set by the Central Bank of Nigeria (CBN). The apex bank had earlier thrown its weight behind the merger, including a pivotal financial accommodation to facilitate the transaction.

The deal received an additional boost with a formal “no objection” clearance from the Securities and Exchange Commission (SEC), reinforcing confidence in the process. These regulatory endorsements align with broader efforts to fortify the resilience of Nigeria’s banking system, enhance capital adequacy across the sector, and mitigate systemic risks.
With a combined capital base exceeding N200 billion, the enlarged institution will comfortably surpass the CBN’s minimum capital threshold for banks operating with a national licence under the ongoing recapitalisation framework. The development places the merged entity among the 21 banks that have met the new capital benchmark for national operations.

Shareholders of both institutions had overwhelmingly approved the scheme of merger at their respective Extraordinary General Meetings in September 2025, formally adopting the transaction. Since then, the process has advanced through additional regulatory clearances, while integration activities are already underway. Final court sanction is expected to conclude the merger process.

Managing Director and Chief Executive Officer of Unity Bank, Ebenezer Kolawole, described the development as a defining moment for the institution, emphasising that the complementary strengths of both banks will position the enlarged entity for sustained growth.
“This milestone underscores our commitment to building a stronger, more resilient bank that can deliver greater value to our customers and stakeholders,” Kolawole said. “The merger significantly enhances our capital base, operational capacity, and strategic positioning. We are confident that the combined institution will be better equipped to support economic growth and deliver innovative financial solutions across Nigeria.”
The bank also dismissed reports suggesting the merger had stalled, clarifying that the transaction remains firmly on course, with outstanding steps largely procedural.
When finalised, the Unity–Providus combination is expected to create a stronger, more competitive, and customer-focused financial institution — one equipped with the scale, innovation, and national reach to reshape retail and SME banking in Nigeria’s evolving financial landscape.