Unity–Providus Merger Surpasses CBN N200bn Recapitalisation Benchmark, Final Approval in View
- Unity Bank and Providus Bank merger surpasses N200 billion capital requirement, ensuring regulatory compliance
- The merger gains backing from regulators and shareholders, setting the stage for a competitive banking entity
- Combining resources aims to enhance service delivery for customers and SMEs, vital for Nigeria's economic growth
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The proposed merger between Unity Bank Plc and Providus Bank Limited has crossed a major regulatory milestone, exceeding the N200 billion minimum capital requirement set by the Central Bank of Nigeria for a national banking licence.
In a statement released on Wednesday, February 18, 2026, Unity Bank confirmed that the combined capital base of the two lenders now surpasses the recapitalisation threshold.
Source: Twitter
The bank also dismissed reports suggesting that the merger process had stalled.
According to the statement, the strengthened capital position reinforces the enlarged institution’s financial stability and long-term competitiveness in Nigeria’s evolving banking landscape.
Regulatory backing and shareholder approval
The merger process has steadily gained regulatory and shareholder support. In September 2025, shareholders of both institutions formally approved the scheme of merger at a court-ordered meeting, paving the way for the business combination.
The apex bank had earlier signalled its backing for the transaction, providing financial accommodation to facilitate the process, according to a Punch report.
In addition, the Securities and Exchange Commission issued a “no objection” approval, alongside other relevant authorities.
With integration activities already underway, the final court sanction is now expected to conclude the merger process. Once granted, it will mark the formal completion of the transaction.
Strengthening capital and competitive edge
Commenting on the development, Managing Director and Chief Executive Officer of Unity Bank, Ebenezer Kolawole, described the achievement as a defining moment for the institution.
He noted that surpassing the N200 billion capital benchmark underscores the bank’s commitment to building a more resilient and future-ready financial institution.
According to him, the merger significantly enhances the bank’s capital base, operational capacity and strategic positioning within the industry.
TheCable reported that he added that the combined entity would be better equipped to deliver innovative financial solutions and support economic growth across Nigeria.
What the merger means for customers and SMEs
When finalised, the Unity–Providus merger is projected to create a stronger and more customer-focused institution with greater scale and reach.
The enlarged bank is expected to deepen its footprint in retail and small and medium-sized enterprise banking, segments widely regarded as critical to Nigeria’s economic expansion.
By consolidating resources, technology and expertise, the combined institution aims to improve service delivery, expand product offerings and strengthen risk management under the recapitalisation framework introduced by the apex bank.
Industry observers see the transaction as part of a broader consolidation trend in Nigeria’s banking sector, driven by stricter capital requirements and the need for stronger balance sheets.
Source: Twitter
With its capital now above the regulatory threshold and final court approval in sight, the Unity–Providus merger appears firmly on track to reshape both institutions into a more competitive force in the national banking space.
5 Nigerian banks with capitalised stocks
Legit.ng earlier reported that the Nigerian Exchange (NGX) Banking Index has started 2026 on a powerful note, rising more than 10 per cent year-to-date, a signal that interest in Nigerian financial stocks remains robust amid broader market optimism.
These gains reflect not just a rebound from previous regulatory headwinds, but also a rapid reshaping of the banking sector into a more resilient, digital, and strategically positioned group of institutions.
These gains reflect not just a rebound from previous regulatory headwinds, but also a rapid reshaping of the banking sector into a more resilient, digital, and strategically positioned group of institutions.
Source: Legit.ng
