Unity Bank Plc and Providus Bank Limited have said that their proposed merger remains firmly on track, with integration efforts already underway as both institutions await final court sanction.
In a joint statement issued last Wednesday, the lenders confirmed that the transaction has cleared key regulatory hurdles and secured overwhelming shareholder approval at a recently concluded Court-Ordered Meeting. What remains, they noted, is largely procedural: the formal approval of the court to consummate the deal.
The banks disclosed that the merger has received critical approvals from regulators, including the Central Bank of Nigeria (CBN). They added that the apex bank provided pivotal financial accommodation to facilitate the transaction, a move interpreted by market watchers as a strong vote of confidence in the combination.
The Securities and Exchange Commission (SEC) has also issued a “no objection” clearance, affirming that the merger complies with capital market and corporate governance requirements.
Together, these approvals position the enlarged institution to meet the N200 billion minimum capital threshold required for banks operating with national licences under the CBN’s recapitalisation framework.
Dismissing speculation that the merger had stalled, the lenders emphasised that the process remains on schedule. “Outstanding steps are largely procedural,” the statement clarified, reinforcing that the final court sanction is the last major milestone.
The transaction comes amid the CBN’s sweeping banking recapitalisation programme, which mandates higher minimum capital thresholds across licence tiers ahead of a March 2026 deadline.
Under the framework, banks with national licences must maintain at least N200 billion in capital, while those operating at a higher tier are required to hold a minimum of N500 billion. The policy is aimed at strengthening systemic stability, enhancing capital adequacy, and building resilience across the financial system.
Once the court grants its approval, the combined Unity–Providus entity is expected to exceed the N200 billion benchmark, effectively securing its national banking status within the stipulated timeline.
Commenting on the development, Managing Director and Chief Executive Officer of Unity Bank, Ebenezer Kolawole, described the merger as transformative.
“The merger represents a defining milestone that enhances our capital strength, operational scale and competitive positioning,” Kolawole said. “The complementary strengths of both institutions create a platform capable of delivering stronger value to customers and stakeholders.”
Providus Bank is widely regarded for its niche corporate banking capabilities and strong digital orientation. Unity Bank, on the other hand, brings an established retail footprint and deep presence in the SME segment. Together, the institutions are expected to deepen market penetration across retail and small business banking, while leveraging digital innovation to drive efficiency.
Integration activities are already in progress to ensure a seamless transition once court approval is secured. Executives say the early coordination reflects a deliberate effort to minimise disruption for customers and staff.
The merger is unfolding against a challenging macroeconomic backdrop. Rising inflation, exchange rate volatility, and tighter liquidity conditions have heightened the need for stronger capital buffers across Nigeria’s banking sector.
Analysts argue that scale, capital depth, and digital capability are becoming decisive competitive factors, particularly as regulatory standards tighten and customer expectations evolve. In that context, consolidation is emerging as a strategic response rather than a defensive move.
Market observers suggest the enlarged institution could benefit from improved balance sheet resilience and greater operational leverage. The combined capital base is expected to provide stronger shock absorption capacity while enabling the bank to compete more effectively for deposits, lending opportunities, and digital market share.
Industry watchers believe the deal could reshape competition within Nigeria’s retail and SME banking space. As lenders race to meet recapitalisation targets, partnerships and mergers are increasingly seen as viable pathways to compliance and growth.
For Unity Bank and Providus Bank, the merger signals more than regulatory alignment. It represents a strategic repositioning designed to create a stronger, more diversified institution capable of navigating economic volatility while expanding market reach.
With final court sanction now the last hurdle, attention turns to the formal completion of the transaction. Once approved, the enlarged bank is poised to join the ranks of institutions that have successfully met the CBN’s new capital benchmark and to chart a new course in Nigeria’s evolving banking landscape.