Providus Bank, Unity Bank Receive Shareholder Approval for Merger

Providus Bank and Unity Bank have secured shareholder approval to merge, creating one of the most significant consolidations in Nigeria’s banking sector in recent years.

The decision followed a court-ordered Extraordinary General Meeting (EGM) held on Friday, where boards and shareholders of both banks gave their consent.

The approval represents a major step toward building a larger, more competitive financial institution in line with Nigeria’s ongoing banking reforms.

A vote of confidence in the financial system

In a joint statement, the two 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.

According to the statement, 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.

Scale and reach

When completed, the merged institution will debut with an extensive network of about 230 branches nationwide, immediately ranking it among the most expansive banks in Nigeria.

• Providus Bank brings its track record in innovation, digital banking, and customer-centric services, while Unity Bank contributes wide geographic reach and decades of brand equity.
• Combined, the lenders say they will be better positioned to support households, SMEs, corporates, and government institutions.
• The merged entity will also launch with a strong capital adequacy ratio, a crucial metric for competitiveness under Nigeria’s evolving banking reforms.

Jobs and people

Both banks emphasised that the transaction 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.

“Employees across both banks will be empowered to contribute to a future-oriented, high-performance organisation,” the statement added.

A bank for the future

The new bank will combine Providus Bank’s reputation for innovation with Unity Bank’s national reach, offering customers improved services backed by enhanced capital strength and technology.

Management of both lenders positions the deal as part of Nigeria’s broader ambition to build banks that can play a catalytic role in achieving a trillion-dollar economy.

• “The Providus–Unity merger ushers in a new era: a bank that is larger in ambition, broader in reach, and stronger in capacity,” the statement read.

With approvals from shareholders now secured, the focus shifts to securing regulatory clearance and completing operational integration in the months ahead.

• The acquisition signals a defining moment for Providus Bank, which began operations in 2017 and has grown into one of Nigeria’s fastest-rising financial institutions.
• Known for its digital-first strategy and SME-friendly offerings, Providus has built a strong reputation among startups and younger customers.
• Unity Bank’s over 211-branch network will give Providus the physical footprint and national banking license it needs to scale retail operations.
• The merger also supports Providus’ broader ambition to become a leading player in Nigeria’s retail banking space.

A recap of financials

As of 2024, Unity Bank reported total assets of about N414 billion (unaudited) and customer deposits of N402 billion. Its market capitalization was N19.4 billion before suspension.

• Providus Bank, in contrast, had grown its balance sheet from N373 billion in 2020 to N2.56 trillion in 2024.
• Customer deposits stood at N1.5 trillion, while profit after tax came in at N33 billion, down slightly from N43.5 billion the previous year.
• The merger is backed by a N700 billion bailout loan from the Central Bank of Nigeria (CBN), which also granted formal merger approval in August 2024.

What you should know

A Federal High Court order issued earlier this month by Justice D.I. Dipeolu directs Unity Bank to convene a shareholder meeting on September 26, 2025, to vote on the proposed merger with Providus Bank.

• Shareholders will be asked to approve a N3.18 per share cash payout or opt for an exchange of 17 Unity Bank shares for 18 shares in the enlarged Providus Bank.
• Unity Bank shares have been suspended from trading since May 2024, having last closed at N1.51. The N3.18 offer therefore represents more than a 100% premium.