Providus Moves to Finalise Unity Bank Merger as CBN Recapitalisation Deadline Nears
- The Providus Bank and Unity Bank merger nears completion ahead of the CBN's recapitalisation deadline
- Merger approval awaits court sanction as both banks align operations for a smooth transition
- Analysts caution about integration challenges despite the merger's potential to reshape Nigeria's banking landscape
The long-anticipated merger between Providus Bank and Unity Bank has entered its final phase, with an official announcement expected within weeks, as Nigeria’s banking sector races against the Central Bank of Nigeria’s (CBN) recapitalisation deadline.
Industry sources confirmed that the proposed consolidation is now more than 90 percent complete, placing it among the three major mergers expected to conclude in early 2026 as tier-two lenders scramble to meet stricter capital requirements.
Source: Getty Images
Race Against the CBN Deadline
In March 2024, the CBN raised the minimum capital thresholds for Nigerian banks, setting a March 2026 deadline for compliance.
Commercial banks with international licences must now hold at least N500 billion in capital, while national and regional banks are required to maintain N200 billion and N50 billion, respectively.
Merchant banks with national licences were also directed to raise their minimum capital base to N50 billion.
Since the announcement, banks across the country have pursued aggressive capital-raising strategies, including rights issues, public offers, private placements, and mergers.
By November 2025, the CBN disclosed that 16 banks had met the new requirements, a figure that has reportedly grown beyond 20.
Unity Bank operates with a national licence, while Providus Bank, already compliant with its capital requirement, holds a regional banking licence.
Merger nears the finish line
Merger talks between both institutions predate the CBN’s recapitalisation directive, but the process gained momentum after regulatory approval was granted in August 2024.
Shareholders of both banks also endorsed the deal at separate extraordinary general meetings held under court orders.
Sources familiar with the process say only a handful of regulatory consents remain outstanding.
Integration teams from both banks have already begun aligning platforms, products, and operational workflows to ensure a smooth transition once the deal is formally completed.
“What is left now is to conclude the final approvals,” a source said. “We are counting days.
It is unlikely to stretch beyond one month before a full announcement is made.”
Awaiting court sanction
Officials at Providus Bank confirmed that the merger process is now awaiting court sanction following the successful court-ordered annual general meeting.
“When a court mandates an AGM, the company must return to the court to confirm compliance before final approval is granted,” a source explained. “That process is ongoing, and announcements will follow in due time.”
Unity Bank’s lifeline
For Unity Bank, the merger represents a crucial lifeline after years of financial strain.
The combined entity is expected to boast a balance sheet approaching N3 trillion, creating a stronger and more resilient institution.
Speaking at Unity Bank’s EGM in September 2025, Chairman Hafiz Mohammed Bashir described the merger as a strategic move that would enhance competitiveness and long-term stability.
Upon completion, the enlarged institution is expected to operate under the name Providus-Unity Bank (PUB).
A report by TheCable said that under the approved scheme, Unity Bank shareholders will receive N3.18 per share or 18 ordinary shares of N0.50 each in Providus for every 17 Unity Bank shares held.
Unity Bank’s share capital will be cancelled, and the bank dissolved without winding up, while Providus Bank retains its licence.
Industry cautions remain
While the CBN’s recapitalisation drive has triggered an active mergers and acquisitions environment, analysts warn of post-merger risks.
DataPro, in its Banking Sector Prospects in Nigeria report, cautioned that integration challenges such as IT harmonisation, cultural alignment, and non-performing loan migration could strain newly merged banks, especially smaller players.
Source: Twitter
Still, as the recapitalisation deadline looms, the Providus–Unity merger is shaping up as one of the most consequential deals in Nigeria’s evolving banking landscape.
Unity Bank terminates over 100 employees after merger
Legit.ng earlier reported that the Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) has issued an ultimatum to the management of Unity Bank Plc, demanding the recall of staff whose employments were recently terminated.
According to the union, Unity Bank sacked over 100 staff, many of whom received their termination letters on January 1, 2026.
ASSBIFI alleged that the directive to fire the staff was issued by Unity Bank’s managing director, Ebenezer Kolawole. The letters reportedly instructed that the employees’ access to official systems be immediately withdrawn.
Source: Legit.ng
