Nigerian lenders Providus Bank and Unity Bank have completed their merger after obtaining all regulatory approvals and court clearance, the newly combined institution announced on Friday, June 26.
ProvidusUnity Bank described the merger as a milestone in building a stronger, more resilient institution that is better positioned to serve customers, support businesses, and contribute to Nigeria’s economic growth. The bank added that it expects to begin operations shortly. The bank said the merger combines Providus Bank’s innovation, agility, and customer-focused approach with Unity Bank’s nationwide network, market reach, and years of banking experience.
The merger was finalized just weeks after a court dismissed a legal challenge filed by shareholders of both banks seeking to block the transaction.
Under the approved terms, Unity Bank shareholders will receive 18 Providus Bank shares with a par value of 50 kobos each (100 kobos equal one naira) for every 17 Unity Bank shares they own. The court also ordered that all of Unity Bank’s assets, liabilities, and obligations be transferred to Providus Bank and approved the dissolution of Unity Bank’s board without winding up the company.
The merged institution will operate about 230 branches across Nigeria, placing it among the country’s banks with the largest physical branch networks.
Merger Reflects Nigeria’s Banking Recapitalization Drive
The merger process, which began in August 2024, is part of a broader consolidation of Nigeria’s banking sector following the recapitalization program launched by the Central Bank of Nigeria (CBN) in March 2024. Under the program, the regulator significantly increased the minimum capital requirements for commercial banks.
By the March 31, 2026 recapitalization deadline, 33 banks had met the new capital requirements. The CBN said the higher capital thresholds were intended not only to strengthen the banking system against external shocks but also to enable lenders to finance larger projects, particularly in strategic sectors such as energy and infrastructure.
Unity Bank was created in 2006 through the merger of nine smaller financial institutions. It is among several small and mid-sized Nigerian banks that struggled to raise additional capital after being weakened by the country’s 2016 economic crisis, which followed the collapse in global oil prices.
Providus Bank, meanwhile, was among the 16 banks that had already met the new minimum capital requirements by November 2025.
Walid Kéfi
