Unity Bank and Providus Bank merger on track as final court approval awaited

Unity Bank Plc and Providus Bank Limited say their planned merger is progressing as scheduled, with integration work already underway while they await final court sanction.

The lenders confirmed the update in a joint statement issued on Wednesday, 18 February 2026, following the conclusion of a court-ordered meeting of shareholders.

According to the banks, the transaction has already secured key regulatory approvals, including support from the Central Bank of Nigeria, putting the combined entity in a position to meet the N200 billion capital requirement for national banking licenses.

They said shareholders overwhelmingly approved the deal, and regulatory clearances have strengthened confidence in the combination. Reports suggesting the merger had stalled were dismissed, with the lenders stressing that the remaining steps are largely procedural.

Once the court grants final approval, the enlarged bank is expected to join the ranks of institutions that meet the Central Bank’s new capital benchmark under its recapitalisation programme.

Regulatory backing and leadership view

The banks stated that the transaction has received critical regulatory support, reinforcing confidence in both the integration process and the capital strength of the merged entity. The statement noted that the Central Bank provided financial accommodation to facilitate the merger, highlighting official confidence in the deal.

“The merger represents a defining milestone that enhances our capital strength, operational scale, and competitive positioning,” said Ebenezer Kolawole, Managing Director and Chief Executive Officer of Unity Bank.
“The complementary strengths of both institutions create a platform capable of delivering stronger value to customers and stakeholders.”

The Securities and Exchange Commission has also issued a “no objection” clearance, confirming compliance with capital market and corporate governance requirements.

With the court sanction as the final major hurdle, both banks said integration work has already begun to ensure a seamless transition once approval is secured.

Recapitalisation drive shapes merger

The merger comes amid the Central Bank’s sweeping recapitalisation programme, which raises minimum capital thresholds for banks across different license categories.

Under the policy, banks operating nationally must maintain at least N200 billion in capital before the March 2026 deadline, while international banks face a N500 billion requirement. The reforms aim to improve financial system stability and strengthen capital adequacy.

Economic pressures, including inflation, currency volatility, and tighter liquidity, have increased the urgency for stronger capital buffers across Nigeria’s banking sector. The proposed merger is expected to produce a capital base above the N200 billion threshold, ensuring national banking status within the deadline.

Market outlook and competitive impact

Analysts say the enlarged institution is likely to benefit from a stronger balance sheet and greater resilience in Nigeria’s volatile macroeconomic environment. Increasingly, scale, capital depth, and digital capabilities are seen as key competitive advantages in the sector.

Providus Bank brings specialist corporate banking expertise and digital capabilities to the merger, while Unity Bank contributes an established retail network and a strong small and medium-sized enterprise banking franchise.

The combined bank is expected to deepen market penetration across retail and SME segments, with industry observers suggesting the deal could reshape competition as lenders adjust to tighter regulations and evolving customer expectations.