Unity Bank and Providus Bank Merger Gains Momentum, Reinforces Nigeria’s Banking Landscape.

The proposed business combination between Unity Bank Plc and Providus Bank Limited is moving steadily toward completion, marking a defining moment in Nigeria’s ongoing banking consolidation journey. Shareholders of both institutions overwhelmingly approved the merger at court‑ordered meetings held in September 2025, and the transaction has received key regulatory endorsements from the Central Bank of Nigeria, which provided financial support, and the Securities and Exchange Commission Nigeria, which issued a “no objection” clearance. Integration activities are now underway as the banks progress toward final court sanction.

At the heart of the merger is a strategic response to regulatory reforms requiring stronger capital bases for national banking licences. The combined institution has already crossed the ₦200 billion capital threshold set by the Central Bank under its recapitalisation framework, positioning the enlarged bank among the 21 lenders that currently meet the benchmark. This enhanced capital strength is expected to improve resilience, support broader lending capacity, and reduce systemic risks within Nigeria’s financial sector.

Unity Bank’s Managing Director and CEO, Ebenezer Kolawole, described the progress as a defining moment for both banks, noting that the complementary strengths of Unity and Providus will create a more competitive, customer‑focused institution. By blending Unity’s extensive network with Providus Bank’s innovation and digital capabilities, the merged entity is expected to deliver enhanced financial solutions to households, small and medium‑sized enterprises (SMEs), and corporate clients across Nigeria.

While some earlier public reports speculated about potential regulatory delays, the banks have clarified that the necessary approvals are in place and that remaining steps are largely procedural. As full integration continues, stakeholders see the merger as a milestone in the broader effort to modernise the Nigerian banking landscape and fortify institutions against evolving economic and regulatory challenges.

Once fully sanctioned, the Unity‑Providus combination is poised to bring significant scale and innovation to Nigeria’s banking sector, creating a larger, more resilient institution capable of supporting economic growth and deepening financial inclusion.