Unity Bank Plc has confirmed that its planned merger with Providus Bank Limited remains on track, following approvals from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).
In a statement on Wednesday, the lender said that the regulatory endorsements, alongside court and shareholder approvals, are part of the process to meet the apex bank’s recapitalisation requirements. The clarification comes amid speculation that the merger had been stalled due to insider credits owed by some of Unity Bank’s directors.
“Recall that the Central Bank of Nigeria backed the merger between the two lenders, providing pivotal financial support to facilitate the transaction,” the bank said. “The merger also received a further boost with a ‘no objection’ nod from the Securities and Exchange Commission. These regulatory approvals are part of broader efforts to strengthen the resilience of Nigeria’s banking system, reinforce capital adequacy across the sector, and mitigate potential systemic risks.”
Once completed, the merged entity will have a capital base exceeding N200 billion, meeting the CBN’s minimum requirement for maintaining a national banking licence. The development places the combined institution among the 21 banks that have satisfied the apex bank’s new capital threshold for national banking operations.
Integration activities between Unity Bank and Providus Bank are currently underway, with final court sanction expected to conclude the process, the statement added.
Speaking on the merger, Ebenezer Kolawole, managing director and CEO of Unity Bank, described the development as a defining moment.
“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 with Providus Bank 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 addressed media reports suggesting delays, stressing that all regulatory approvals have been secured, with remaining steps largely procedural. “The transaction remains firmly on track. The necessary regulatory steps have been completed, with a few other steps only a matter of formality,” the statement said.
Shareholders had already approved the merger on 26 September 2025. Under the scheme, all assets, liabilities, and undertakings of Unity Bank will transfer to Providus Bank, while all legal proceedings involving Unity Bank will continue under Providus Bank after court sanction. Unity Bank shareholders will either receive N3.18 per share or be allotted 18 ordinary shares of Providus Bank for every 17 Unity Bank shares previously held.
Industry observers note that the transaction, now in its final phase, is expected to further consolidate Nigeria’s banking sector, creating a stronger institution capable of competing more effectively in the national market.
