UNITY, PROVIDUS BANKS MERGER ON COURSE AS INTEGRATION ADVANCES

UNITY, PROVIDUS BANKS MERGER ON COURSE AS INTEGRATION ADVANCES
The proposed merger between Unity Bank Plc and Providus Bank Limited is advancing steadily, entering its final integration phase after securing key regulatory approvals and surpassing the Central Bank of Nigeria’s (CBN) new ₦200 billion capital threshold required to retain a national banking licence under the ongoing recapitalisation framework. A joint statement from the two banks confirmed that their business combination remains firmly on course following a recent Court‑Ordered Meeting and overwhelming endorsement by shareholders, underlining continued regulatory support and strong investor confidence in the transaction. The merger has received critical endorsements from

• The Central Bank of Nigeria (CBN), which not only backed the transaction but also provided pivotal financial accommodation to facilitate it.

• The Securities and Exchange Commission (SEC), issuing a formal “no‑objection” clearance as part of broader efforts to reinforce corporate governance and capital market compliance. With these approvals, the enlarged bank’s combined capital base exceeds ₦200 billion, placing it comfortably above the CBN’s minimum requirement for national banks a key milestone in the apex bank’s banking recapitalisation strategy. Integration activities between Unity and Providus are already underway as both institutions prepare for the final court sanction, which remains the last major procedural step before formal completion of the merger. Analysts say the swift endorsement by regulators and shareholders demonstrates strong alignment behind consolidation efforts aimed at strengthening systemic resilience. The Managing Director and Chief Executive Officer of Unity Bank, Ebenezer Kolawole, described the development as a “defining moment” for Nigeria’s financial services sector, highlighting that the complementary strengths of both banks coupled with a stronger capital base will position the merged entity to drive economic growth, enhance operational capacity, and deliver innovative banking solutions across the country.
  Executives have emphasised that the combined institution will be better equipped to serve retail customers, small‑ and medium‑sized enterprises (SMEs), and corporate clients while increasing competitiveness within Nigeria’s expanding banking landscape. Market watchers say the Unity‑Providus merger one of the most significant consolidation moves in Nigeria’s banking recapitalisation cycle reflects a broader trend of strategic combinations as lenders adapt to stricter capital requirements introduced by the CBN. By meeting the higher capital bar ahead of the March 31, 2026 deadline, the combined bank joins the cohort of financial institutions that have successfully positioned themselves for long‑term stability and growth.