Shareholders have approved the merger of Unity Bank Plc with Providus Bank Limited.
They gave their consent at a court-ordered Extraordinary General Meeting (EGM) on Friday, September 26.
The approval, expected to enable the banks to consolidate their assets as well as liabilities, represents a major step toward building a larger, more competitive financial institution in line with Nigeria’s ongoing banking reforms.
In a joint statement, Unity and Providus banks expressed appreciation to the Central Bank of Nigeria (CBN) for backing the transaction, describing it as a critical step in strengthening the financial system.
READ ALSO: Court-ordered Meeting: Shareholders to Okay Unity, Providus Banks Merger
It banks stated that the apex bank’s role underscores its commitment to building a resilient sector that inspires confidence among investors, businesses, and ordinary Nigerians.
“By enabling this transaction, the CBN has reinforced its vision of a sector anchored on resilience and customer trust. This regulatory support is shaping banks that are better positioned to serve businesses, investors, and everyday Nigerians,” the statement noted.
It noted that the merger is not merely about balance sheets but about people and livelihoods.
The merger is expected to safeguard jobs, protect employee welfare, and create new career opportunities in a larger, stronger institution, it added.
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Pinnacle Daily had reported earlier this month on the court-ordered meeting, mandating shareholders to consider and give their consent to the Unity and Providus banks’ merger plan.
The order was issued by Justice D. I. Dipeolu of the Federal High Court sitting in Lagos for the EGM to be held on Friday, September 26, in Abeokuta, Ogun State.
The apex bank had, on Tuesday, August 6, approved the merger, citing the provisions of Section 42(2) of the CBN Act, 2007.
Pinnacle Daily reports that the merger was expected, as most financial institutions are in a last-ditch effort to ensure their banks have the right risk exposure to businesses, with many of them in the capital market to raise funds to meet the CBN recapitalisation mandate.
In March 2024, CBN introduced the minimum paid-up capital requirement to drive recapitalisation activities in the banking industry and fixed March 30, 2026, as the deadline for the banks to comply.
It pegged the minimum capital base for commercial banks with international exposure at ₦500 billion, commercial banks with national authorisation at ₦200 billion, regional banks and merchant banks at ₦50 billion, and non-interest banks with national and regional operations at ₦20 billion and ₦10 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
