Providus Bank to Absorb Unity Bank in Landmark Merger amid CBN Recapitalisation Drive
- Providus Bank, which holds a regional banking licence, is set to take over the corporate identity and structure of a national bank
- Under the merger arrangement, Providus Bank’s certificate will serve as the enlarged institution
- According to reports, the arrangement entails that Unity Bank’s share capital will be cancelled, which will lead to dissolution
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Providus Bank, which currently holds a regional banking licence, is set to take over the corporate identity and operations of Unity Bank in a strategic merger.
According to BusinessDay, the arrangement stipulates that Unity Bank’s entire share capital will be cancelled, effectively leading to its dissolution.
Source: Twitter
Under the approved scheme of merger, Providus Bank Limited’s certificate of incorporation will serve as that of the enlarged institution.
Unity Bank shareholders will either receive cash payments or be allotted shares in Providus as part of the deal.
This development positions Providus to move from a regional player into a much larger financial institution, combining Unity’s national banking reach with Providus’ fast-growing corporate and retail operations.
Why the merger between Unitiy, Providus?
The move is part of a wider consolidation in Nigeria’s banking sector triggered by the CBN’s recapitalisation directive. In April 2024, the apex bank ordered lenders to significantly raise their minimum capital to strengthen the industry’s capacity to finance Nigeria’s $1 trillion GDP target by 2030.
The new capital requirements set a N200 billion minimum for national banks, up from the previous N25 billion.
This has left many smaller and mid-tier banks scrambling to raise capital or seek merger partners to remain competitive.
Sources quoted by The Sun revealed that Providus and Unity Bank began discreet merger talks earlier in 2025 as both institutions explored synergies to meet regulatory requirements while reducing reliance on expensive market fundraising.
Other banks are already in the clear
Legit.ng earlier reported that at least 11 banks, including Access Bank, Zenith Bank, Ecobank, GTBank, Stanbic IBTC, Jaiz Bank, PremiumTrust Bank and Lotus Bank, have already met the CBN’s recapitalisation target.
However, several smaller banks still face a massive funding gap. Reports indicate that six banks are short by about N965 billion, with many likely to pursue mergers or risk licence downgrades.
Experts see more shake-ups ahead
Analysts believe the Providus–Unity deal is only the beginning of sweeping consolidation across Nigeria’s financial sector. According to financial analyst Osas Igho, the recapitalisation drive will ultimately strengthen the system:
“At the end of the day, we will have a strong, robust, and globally competitive banking industry. But as the deadline nears, more banks will battle to raise the required capital, which means more mergers and acquisitions are inevitable.”
While some tier-1 banks are well-positioned, smaller institutions remain vulnerable. High regulatory costs, disclosure requirements, and investor apathy are pushing many toward discreet merger arrangements similar to that of Providus and Unity.
Source: Getty Images
What merger means for customers
For Unity Bank customers, the merger means their accounts and services will likely transition to the Providus brand.
While the process may involve some operational adjustments, banking experts say the deal could strengthen customer offerings, expand branch networks, and improve access to digital and corporate banking solutions.
As recapitalisation continues to reshape Nigeria’s financial sector, the Providus–Unity deal is a clear sign of the industry’s future: fewer but stronger banks with the scale to finance growth in Africa’s biggest economy.
Union Bank completes Titan Trust Bank merger
Legit.ng earlier reported that ahead of the March 31, 2026, banking recapitalisation deadline by the CBN, one of Nigeria’s oldest banks, Union Bank, announced a successful merger with Titan Trust Bank.
The development followed a final approval from the CBN, sealing the final merger of the two banks.
According to a statement from Union Bank’s chief brand and marketing officer, Olufunmilayo Aluko, the merger concluded a process that began in 2021 and was expected to position the firm as a stronger force in Nigeria’s financial sector.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
