EXCLUSIVE: PROVIDUS, UNITY BANKS IN FINAL TALKS AHEAD OF MERGER
Read Time:2 Minute, 44 Second
By: Fasasi Hammad
The proposed merger between Providus Bank and Unity Bank has reportedly reached its final stage, with an official announcement expected imminently.
The deal is among three major consolidations anticipated in early 2026, as tier-2 lenders rush to meet the recapitalisation deadline set by the Central Bank of Nigeria (CBN).
Sources familiar with the negotiations, both within and outside the banks, confirmed that the consolidation process is nearly complete.
In March 2024, the CBN raised the minimum capital requirement for commercial banks, setting a March 2026 deadline for compliance. The new requirements pegged the capital base at ₦500 billion for banks with international licences, ₦200 billion for national banks, and ₦50 billion for regional banks. Merchant banks with national licences also saw their minimum capital requirement increase to ₦50 billion.
Since the directive, banks have sought to raise capital through share issuances, rights issues, and private placements. By November 2025, 16 banks had met the new requirements; that number has now surpassed 20.
Unity Bank holds a national licence, while Providus, which has already met its capital requirements, operates as a regional bank. Merger discussions were already underway when the CBN granted approval for the consolidation in August 2024, following the recapitalisation directive. Shareholders of both banks approved the merger at separate extraordinary general meetings (EGMs), with court backing facilitating the process.
The Media understands that the merger is more than 90% complete, with only a few regulatory approvals pending. Teams from both banks are already working on integrating platforms, products, and brands to ensure a smooth transition.
“What remains is simply to finalise the process,” an insider said. “We are counting days; I don’t see it taking more than a month for the full merger announcement.”
Providus Bank sources added that the bank is awaiting a court sanction following a successful court-ordered annual general meeting. “Once the court confirms compliance, the merger will proceed,” an insider explained.
READ MORE…
INDIA, EU SEAL “MOTHER OF ALL DEALS” IN LANDMARK TRADE PACT AFTER 20 YEARS OF TALKS
The merger is expected to create a post-merger entity with a balance sheet of up to ₦3 trillion, providing Unity Bank — historically a struggling institution — with a lifeline. Speaking at the EGM in September 2025, Unity Bank Chairman Hafiz Mohammed Bashir said the consolidation would create a stronger, more competitive, and resilient bank.
The merged institution will reportedly be named Providus-Unity Bank (PUB). Under the agreed scheme, Unity Bank shareholders will receive ₦3.18 per share or 18 ordinary shares of ₦0.50 each in Providus for every 17 Unity Bank shares held. Unity Bank’s entire share capital will be cancelled, and the bank will be dissolved without winding up, while Providus Bank Limited will continue as the legal entity of the enlarged bank.
In its report Banking Sector Prospects in Nigeria, DataPro noted that the CBN’s recapitalisation drive has stimulated mergers and acquisitions but carries significant risks. The deadline has prompted intense “war room” discussions in the industry, focusing on deal execution and risk management.
DataPro warned that post-merger challenges — including IT system integration, cultural alignment, and the management of non-performing loans (NPLs) — could test newly merged entities, particularly smaller banks.
Happy
0 %
Sad
0 %
Excited
0 %
Sleepy
0 %
Angry
0 %
Surprise
0 %
0
0