Lagos, Nigeria – Unity Bank Plc and Providus Bank Limited have confirmed that their proposed merger remains firmly on course, with integration already underway pending final court sanctions, the lenders disclosed in a joint release on Wednesday.
Okay News reports that the update follows a recently concluded Court Ordered Meeting. The banks said the transaction has secured key regulatory approvals, including backing from the Central Bank of Nigeria, positioning the combined entity to meet the N200 billion capital requirement for national banking operations. The lenders noted that shareholder approval was overwhelmingly secured, while regulatory clearances have further strengthened confidence in the strategic combination. They also dismissed reports suggesting the merger had stalled, clarifying that outstanding steps are largely procedural.
According to the release, the CBN provided pivotal financial accommodation to support the merger, underscoring regulatory confidence in the deal. Ebenezer Kolawole, Managing Director and Chief Executive Officer of Unity Bank, said the merger represents a defining milestone that enhances capital strength, operational scale, and competitive positioning. He added that the complementary strengths of both institutions create a platform capable of delivering stronger value to customers and stakeholders. The Securities and Exchange Commission has issued a no objection clearance, affirming compliance with capital market and corporate governance requirements.
The merger is unfolding against the backdrop of the CBN’s banking sector recapitalisation programme, which mandates higher minimum capital thresholds for lenders operating at different licence tiers. Under the framework, banks with national licences are required to maintain a minimum capital base of N200 billion ahead of a March 2026 deadline. The policy is designed to strengthen systemic stability and enhance capital adequacy across the sector. The proposed combination of Unity Bank and Providus Bank is expected to produce a capital base exceeding the N200 billion requirement.
Providus Bank brings niche corporate banking capabilities and digital strengths to the merger, while Unity Bank contributes an established retail footprint and SME banking presence. The combined entity is expected to deepen market penetration across retail and SME segments. Once the court grants final sanction, the enlarged institution is expected to emerge among banks that have met the new capital benchmark under the CBN’s recapitalisation framework. The lenders added that with the court sanction now the final major step, integration efforts between both institutions are already underway to ensure a seamless transition once approval is secured.
