Providus Bank Limited and Unity Bank Plc have successfully completed their merger process, receiving final regulatory clearance after securing overwhelming shareholder approval. The strategic business combination, which sees Providus Bank as the enlarged entity, is a direct response to the Central Bank of Nigeria’s (CBN) directive to commercial banks to meet new, stringent capital base requirements ahead of the March 2026 deadline.
The move marks the first major banking consolidation since the CBN initiated the recapitalization program in March 2024, designed to create stronger, more resilient financial institutions capable of supporting Nigeria’s economic growth goals.
A New Entity, A Wider Reach
The Scheme of Merger was decisively approved at a court-ordered extraordinary general meeting (EGM) on Friday, September 26, 2025, where over 99% of Unity Bank’s shareholders voted in favour of the union.
The combined institution, provisionally referred to as “Providus-Unity Bank,” is set to dramatically expand its national footprint.
By integrating Unity Bank’s extensive network, particularly in Northern Nigeria, with Providus Bank’s strong corporate and digital capabilities, the new entity will boast an expanded network of approximately 230 branches nationwide.
According to financial analysts, the combined institution will command total assets estimated at N2.43 trillion and total customer deposits of around N848.9 billion, positioning it firmly among Nigeria’s top commercial banks by size and reach.
CBN’s Financial Accommodation Proves Pivotal
A key element enabling the merger’s success was the substantial financial accommodation provided by the Central Bank of Nigeria. The CBN, which gave its consent to the deal in August, provided a structured financial support package, including a long-term loan facility, to ensure the financial health and operational stability of the post-merger institution.
This intervention, granted under Section 42 (2) of the CBN Act, was crucial for settling various pre-existing obligations of Unity Bank, confirming the regulator’s commitment to averting potential systemic risk and ensuring a smooth consolidation process.
Commenting on the completion, the Chairman of Unity Bank, Mr. Hafiz Bashir, stated that the shareholder approval signaled a “strong vote of confidence in the merger and what it represents for the future.” He emphasized that the collaboration creates a “stronger, more competitive, and more resilient institution” capable of delivering long-term value to all stakeholders.
The new bank will operate under the retained certificate of incorporation of Providus Bank, while the entire share capital of Unity Bank will be cancelled and the bank dissolved without winding up, completing its transition into the newly enlarged entity. The focus now shifts to the complex process of integrating systems, operations, and staff ahead of the 2026 recapitalization final assessment.
