Unity–Providus merger crosses N200bn recapitalisation benchmark

The proposed merger and business combination between Unity Bank Plc and Providus Bank Limited has surpassed the N200bn capital threshold required under the Central Bank of Nigeria’s recapitalisation framework for a national banking licence.

This was disclosed in a statement on Wednesday from Unity Bank, which also dismissed claims that the merger had stalled.

The PUNCH reports that in September 2025, the shareholders of both financial institutions formally adopted the scheme of merger at a court-ordered meeting. The CBN had earlier backed the merger between the two lenders, providing a pivotal financial accommodation to support the transaction. The merger also received a “no objection” approval from the Securities and Exchange Commission and other relevant authorities. Integration activities between the two institutions are currently underway, with the final court sanction expected to conclude the process.

“Through the proposed merger, the combined capital base of Unity Bank and Providus Bank exceeds N200bn, which is the minimum requirement to retain a national banking licence under the CBN’s recapitalisation framework. The transaction marks a significant milestone in strengthening the financial stability and long-term competitiveness of the enlarged institution,” read part of the statement.

Managing Director/Chief Executive Officer of Unity Bank, Ebenezer Kolawole, described the milestone as a defining moment for the institution, emphasising that the merger significantly strengthens the bank’s capital and operational capacity.

“This milestone underscores our commitment to building a stronger, more resilient bank that can deliver greater value to our customers and stakeholders. 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,” he said.

When finalised, the Unity–Providus merger is expected to result in a stronger, more competitive and customer-focused financial institution, with enhanced scale, innovation and reach. The enlarged entity is projected to strengthen its presence in retail and SME banking while reinforcing its long-term financial stability under the CBN’s recapitalisation regime.