Nigeria’s banking sector is witnessing another wave of consolidation. Unity Bank Plc has announced plans to merge with Providus Bank Limited, with shareholders scheduled to decide on the proposal at a court-ordered meeting on September 26, 2025.
The merger is backed by the Central Bank of Nigeria (CBN) and promises to reshape the competitive landscape while offering Unity Bank shareholders a clear path forward.
Key Details of the Merger Proposal
- Payout Options for Unity Bank Shareholders:
- ₦3.18 per Unity Bank share in cash, or
- Equity swap of 18 Providus Bank shares for every 17 Unity Bank shares.
- Structure of the Merger:
- Unity Bank’s entire share capital will be cancelled.
- The bank will be dissolved without winding up.
- Providus Bank’s certificate of incorporation will stand, making it the surviving entity.
- Shareholder Approval Requirement:
At least 75% approval at the court-ordered meeting, which will be held at the Olusegun Obasanjo Presidential Library (OOPL) Hotel, Abeokuta.
Why the Merger Matters
- Regulatory Compliance:
The CBN has been pushing for stronger capitalisation among Nigerian banks. A merger strengthens Unity Bank’s capital base while giving Providus access to Unity’s customer base. - Financial Backing:
The merger is supported by a ₦700 billion CBN-backed package, which includes a Federal Government of Nigeria bond to cover Unity Bank’s liabilities. - Operational Strength:
Providus Bank will absorb Unity Bank’s branches, deposits, and customer network, creating a stronger and more competitive player in Nigeria’s financial ecosystem.
Impact on Shareholders
For Unity Bank shareholders, the merger presents two clear options:
- Cash Out: Receive ₦3.18 per share, a straightforward payout.
- Swap for Growth: Opt for Providus Bank shares, allowing participation in the long-term growth of the enlarged entity.
This dual approach provides flexibility and ensures no shareholder is left behind.
Impact on Shareholders
For Unity Bank shareholders, the merger presents two clear options:
- Cash Out: Receive ₦3.18 per share, a straightforward payout.
- Swap for Growth: Opt for Providus Bank shares, allowing participation in the long-term growth of the enlarged entity.
This dual approach provides flexibility and ensures no shareholder is left behind.
The proposed Unity Bank–Providus Bank merger is more than a corporate restructuring—it is a strategic move to strengthen Nigeria’s banking industry. Backed by a ₦700 billion support package and offering shareholders both cash and equity swap options, the deal reflects the growing momentum toward financial stability, inclusion, and consolidation.
If approved on September 26, 2025, Providus Bank will emerge as the surviving entity, ready to redefine its position among Nigeria’s leading banks.
