Following a recent Court-ordered Meeting, shareholders are to consider and give consent to the merger plan between Unity Bank Plc and Providus Bank Limited.
The order was issued by Justice D. I. Dipeolu of the Federal High Court sitting in Lagos.
According to an official disclosure on Tuesday, September 2, by Unity Bank, the meeting is scheduled to be held on September 26, 2025, in Abeokuta, Ogun State.
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“The Court has directed that a meeting of the holders of the fully paid up ordinary shares of Unity Bank Plc be convened and held for the purpose of considering and, if thought fit, approving (with or without modification) a Scheme of Merger between the Bank and Providus Bank Limited,” it stated.
Part of the special resolutions to be reached include:
- That the merger of all the assets, liabilities and undertakings, including real properties, and Intellectual property rights of the Unity Bank with those of Providus Bank, upon the terms and subject to the conditions set out in the Scheme Document, is hereby approved without any further act or deed.
- That all legal proceedings, claims and litigation matters pending or contemplated by or against the Unity Bank be continued by or against Providus Bank after the Scheme is sanctioned by the Court.
- That in consideration of (2) above, all shareholders of the Bank shall, after the Scheme is sanctioned by the Court, be paid ₦3.18 for every share held in the Unity Bank in accordance with the terms stipulated in the Scheme, or be allotted 18 ordinary shares of N0.50 each in Providus Bank (credited as fully paid) in exchange for every 17 ordinary shares of the Unity Bank of N0.50 each as the Scheme Consideration.
- That the entire share capital of the Unity Bank be cancelled and the Bank be dissolved without winding up.
- That the certificate of incorporation of Providus Bank shall be the certificate of incorporation of the Enlarged Bank.
- That the Solicitors of the Unity Bank be and are hereby directed to seek orders of the Court sanctioning the Scheme and the foregoing resolutions, as well as such other incidental, consequential or supplemental orders as are necessary or required to give full effect to the Scheme.
- That the Directors of Unity Bank be and are hereby authorised to take such other actions and steps as necessary or required to give full effect to the Scheme.
Unity Bank’s Chairman, Hafiz Mohammed Bashir, or Managing Director, Ebenezer Kolawole, or failing both, any other director appointed in their stead by the shareholders present at the meeting, can act as Chairman of the said meeting and report feedback, the Court ordered.
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Pinnacle Daily reports that the Central Bank of Nigeria (CBN) had on Tuesday, August 6, approved the merger, citing the provisions of Section 42 (2) of the CBN Act, 2007.
The merger is expected, as most Deposit Money Banks (DMB) are in a last-ditch effort to ensure that their banks have the right risk exposure to businesses, with many of them in the capital market to raise funds for that support.
It comes as the March 2026 deadline for Nigerian banks’ recapitalisation draws nearer.
In March 2024, the apex bank introduced the minimum paid-up capital requirement to drive recapitalisation activities in the banking industry.
It pegged the minimum capital requirement for commercial banks with international exposure at N500 billion, commercial banks with national authorisation at N200 billion, regional banks and merchant banks at N50 billion, non-interest banks with national and regional operations at N20 billion and N10 billion, respectively.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
