Unity Bank, Providus Merger Edges Closer: Shareholder Vote Set for September 26, 2025
Unity Bank is set on the brink of a transformative merger with Providus Bank, pending a crucial shareholder vote scheduled for September 26, 2025. The Federal High Court in Lagos has issued a court-ordered directive confirming the meeting, where Unity Bank’s fate will be determined.
Key Terms Under Consideration:
Merger Details: Unity Bank shareholders face two options:
A cash payment of ₦3.18 per Unity Bank share, or
An equity swap, receiving 18 Providus Bank ordinary shares for every 17 Unity Bank shares held.
Corporate Consolidation: If approved, Unity Bank’s share capital will be entirely cancelled, effectively dissolving the bank. Providus Bank’s certificate of incorporation will then serve as the legal foundation for the enlarged entity.
Asset and Liability Transfer: The deal will transfer all of Unity Bank’s assets, liabilities, intellectual property, and ongoing litigations to Providus. Legal proceedings against or by Unity Bank will continue under the Providus name.
Director Flexibility: Unity Bank’s directors are granted authority to adjust the merger terms as needed to satisfy final regulatory (CBN, SEC) or court requirements.
Background & Regulatory Support:
CBN Endorsement and Financial Cushion: The Central Bank of Nigeria (CBN) greenlit the merger in August 2024 and immediately authorized a ₦700 billion bailout package to underpin the recapitalization of the new banking entity.
Breakdown of CBN Fund Allocation:
₦303.7 billion to settle Unity Bank’s obligations, including debts to First Bank, the CBN (Anchor Borrower Scheme), and NIRSAL.
₦392.3 billion channeled into a 20-year Federal Government bond, qualifying as Tier-2 capital for the merged entity.
Broader Sector Implications:
This merger is part of a growing wave of consolidation in Nigeria’s banking sector, spurred by the CBN’s elevated minimum capital requirement for national banks (raised to ₦200 billion). Many mid- and small-tier banks are now weighing recapitalization schemes or partnerships to stay viable.
For Unity Bank, heavily backed by AMCON, the deal offers a viable path forward, stabilizing operations, safeguarding depositor interests, and preserving shareholder value in a controlled transition.