Supreme Court Clears Merger of 2 Nigerian Banks, Approves New Name
- The Supreme Court dismissed an appeal challenging the merger of Providus Bank Limited and Unity Bank Plc
- The court invoked Section 22 of the Supreme Court Act to directly sanction the merger
- It also approved the transfer of all assets, liabilities, and undertakings within 10 days
Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, the stock market, and broader market trends.
The Supreme Court of Nigeria has finally brought an end to the legal battle over the proposed merger between Providus Bank Limited and Unity Bank Plc.
The court dismissed an appeal against the transaction and granted costs of N10million against the appellants to each of the respondents on Monday, June 1.
Source: UGC
Court approves Unity Bank, Providus merger, name change
A five-member panel of the apex court, presided by Justice Tijani Abubakar, while delivering judgment in an appeal No. SC/CV/132/2026, which arose from decisions at the Court of Appeal and the Federal High Court, held that the appeal lacked merit, and therefore invoked section 22 of the Supreme Court Act and gave its final sanction for the merger, Guardian reports.
The court further held that all the property, assets and undertakings of Unity Bank Plc, inclusive of its real property, be transferred to Providus Bank Limited as contained in the scheme of merger and that all proceedings necessary to achieve this should be completed within 10 days.
The apex court, in its proceedings, also gave its approval for the consideration of N3.18 per share or 18 Providus Bank shares of 50 kobo each for every 17 Unity Bank shares held by shareholders.
The Supreme Court further held for the dissolution of the board of directors of Unity Bank Plc, without winding up Unity Bank Plc and approved the new name for the enlarged Unity Bank Plc to be ProvidusUnity Bank Plc.
Source: Getty Images
CBN approves
Those against the merger were two shareholders and customers of the banks, who had dragged both Unity Bank and Providus Bank, together with all regulatory agencies and financial advisers in the transaction, to court in order to halt the proposed merger.
They are respondents in the suit, Central Bank of Nigeria, Securities and Exchange Commission, Corporate Affairs Commission and Federal Competition and Consumer Protection Commission, as well as the banks and the financial advisers to the transaction.
Delivering the court’s decision, the panel held that the appeal lacked merit and accordingly dismissed it in its entirety, while imposing costs of N10 million in favour of each respondent.
Speaking on the judgment, Senior Counsel to Unity Bank Plc, D.D. Dodo (SAN) described the decision of the Supreme Court as historic, noting that it has removed the last hurdle to the merger and also for the public interest of the entire banking system in Nigeria.
Nigerian bank shuts down, updates social media accounts to new name
Earlier, Legit.ng reported that Titan Trust Bank Limited has officially changed its social media handles to Union Bank of Nigeria, formally ending its existence as a separate entity.
The decision was sealed after the Central Bank of Nigeria (CBN) finally approved its long-awaited merger.
Union Bank said that both institutions will continue to operate under its 108-year-old brand name.
Source: Legit.ng
