Unity, Providus Banks merger moves to integration
Unity Bank and Providus Bank Initiate Merger Integration Process
By Babajide Komolafe
Unity Bank Plc and Providus Bank Limited have officially begun the integration process following a successful Court-Ordered Meeting that received strong shareholder support. The merger remains on track as both institutions move towards formalizing their business combination.
Analysts view the backing from regulatory authorities and the significant approval from shareholders as critical achievements that will help meet the recapitalization requirements set by the Central Bank of Nigeria (CBN) within the designated timeline.
The CBN has endorsed the merger, providing key financial support to facilitate the transaction. In addition, the Securities and Exchange Commission (SEC) has issued a “no objection” approval, marking a significant step in a broader initiative to bolster the Nigerian banking system, enhance capital adequacy, and mitigate potential systemic risks.
The merged entity is projected to be among the 21 banks that meet the CBN’s new capital requirements for national banking operations. The combined capital of Unity Bank and Providus Bank is expected to exceed N200 billion, surpassing the minimum threshold necessary to maintain national banking licenses as outlined in the CBN’s recapitalization framework. This merger is poised to enhance the financial stability and competitive positioning of the newly formed institution.
Following CBN approval, shareholders from both banks overwhelmingly supported the merger at their Extraordinary General Meetings held in September 2025, where the merger scheme was adopted. The transaction has advanced with the necessary regulatory clearances from the SEC and other relevant authorities. Integration activities are now underway, with final court approval anticipated to conclude the merger.
Ebenezer Kolawole, Managing Director and Chief Executive Officer of Unity Bank, characterized this development as a pivotal moment for the institution. He indicated that the strengths and advantages of both banks will position the new entity to capitalize on market opportunities.
“This milestone highlights our commitment to building a resilient bank that provides greater value to our customers and stakeholders. The merger with Providus Bank significantly boosts our capital base, operational capacity, and market positioning. We are confident that the combined institution will support economic growth and deliver innovative financial solutions across Nigeria,” Kolawole stated.
Unity Bank also clarified reports suggesting that the merger process had stalled, affirming that the transaction remains firmly on its planned trajectory. Most regulatory steps have been completed, with only a few formalities pending.
Upon completion, the Unity-Providus merger is anticipated to create a stronger, more competitive financial institution equipped to transform the retail and SME banking landscape in Nigeria.
