Nigeria’s banking landscape is on the brink of a game-changing shake-up. In a high-stakes court-mandated merger, Providus Bank is set to take over Unity Bank Plc, creating a consolidated powerhouse with deepened reach and heightened competitive clout.
The all-important vote is scheduled for September 26, and the stakes have never been higher.
The Meeting
A Federal High Court in Lagos has authorized a shareholders’ meeting for Unity Bank, to be held at the Obasanjo Presidential Library Hotel on September 26. Unity’s shareholders will vote on a merger scheme with Providus, which includes:
1. Cancellation of Unity Bank’s share capital, effectively dissolving it.
2. The expanded entity will carry Providus Bank’s name and incorporation.
3. Shareholder options:
* ₦3.18 cash per Unity share, or
* 18 Providus shares (₦0.50 each) for every 17 Unity shares.
Additionally, Unity Bank’s existing legal matters will continue under the Providus name, and provisions are made for regulatory compliance with CBN and SEC post-merger.
Why This Merger Is A Big Deal
1. Answering the CBN’s N200 Billion Capital Call
The Central Bank’s recapitalization policy is squeezing mid-tier banks. By merging, Providus meets the threshold while stabilizing Unity. The deal also attracts a ₦700 billion CBN loan, set to be split for settling Unity’s liabilities and investing in long-term FGN bonds.
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2. Scale and Digital Muscle
Unity’s nationwide footprint—approximately 231 branches—combined with Providus’s digital-first model, creates an agile, scalable institution positioned to rival the big banks on both retail and corporate fronts.
3. A Sophisticated Bailout
The merger is painted as a strategic consolidation. But critics ask: does this turn Unity’s weakness into Providus’s strength? Will taxpayers shoulder the risk behind a bold expansion?
There may not be fanfare or fireworks, but this merger promises to rewrite Nigeria’s mid-tier banking script. It’s a bet on scale, innovation, and survival—and the business community is all eyes and ears.
