Unity, Providus banks’ merger, integration on course

Through the merger, the combined capital base of Unity and Providus banks exceeds N200 billion, which is the minimum to retain a national banking licence under CBN’s recapitalisation framework. The transaction marks a significant milestone in strengthening the financial stability and long-term competitiveness of the enlarged institution.

Central Bank of Nigeria backed the merger, with a pivotal financial accommodation to support the transaction. The merger also received a boost with a “no objection” nod from  Securities and Exchange Commission. The regulatory approvals form part of broader efforts to strengthen the resilience of Nigeria’s banking system, reinforce capital adequacy, and mitigate potential systemic risks.

The development positions the combined entity among the 21 banks that have satisfied the new capital threshold for national banking operations.

Following CBN’s approval, the shareholders endorsed the merger at their Extraordinary General Meetings in September. The transaction has progressed with additional regulatory clearances from SEC and other relevant authorities. Integration activities between the two institutions are underway, with the final court sanction to conclude the process.

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Managing Director and Chief Executive  officerof Unity Bank, Ebenezer Kolawole, said the development is a defining moment, adding the strength and advantages of both banks place the entity on a strong footing to create and leverage opportunities in the market.

“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.”

The Bank further clarified that, contrary to reports in certain sections of the media suggesting that the merger process had stalled, the transaction remains firmly on track. The necessary regulatory steps have been completed, with a few other steps only a matter of formality.

When completed, the Unity-Providus merger is expected to deliver a stronger, more competitive, and customer-centric financial institution — one with the scale, innovation, and reach to redefine the retail and SME banking landscape in Nigeria.