Unity Bank Plc and Providus Bank Restricted have confirmed that their proposed merger stays firmly on the right track, with integration already underway pending ultimate courtroom sanctions.
The replace was disclosed in a joint launch issued by the lenders on Wednesday, February 18, 2026, following a not too long ago concluded Court docket-Ordered Assembly.
The banks stated the transaction has secured key regulatory approvals, together with backing from the Central Bank of Nigeria (CBN), positioning the mixed entity to fulfill the N200 billion capital requirement for nationwide banking operations.
The lenders famous that shareholder approval was overwhelmingly secured, whereas regulatory clearances have additional strengthened confidence within the strategic mixture. Additionally they dismissed stories suggesting the merger had stalled, clarifying that excellent steps are largely procedural.
As soon as the courtroom grants ultimate sanction, the enlarged establishment is anticipated to emerge amongst banks which have met the brand new capital benchmark below the CBN’s recapitalisation framework.
What they are saying
The banks stated the transaction has acquired essential regulatory backing, reinforcing confidence within the integration course of and the enlarged establishment’s capital power. In accordance with the discharge, the CBN supplied pivotal monetary lodging to assist the merger, underscoring regulatory confidence within the deal.
- “The merger represents a defining milestone that enhances our capital power, operational scale and aggressive positioning,” stated Ebenezer Kolawole, Managing Director and Chief Govt Officer of Unity Bank.
- “The complementary strengths of each establishments create a platform able to delivering stronger worth to prospects and stakeholders.”
- The Securities and Alternate Fee (SEC) has issued a “no objection” clearance, affirming compliance with capital market and company governance necessities.
The lenders added that with the courtroom sanction now the ultimate main step, integration efforts between each establishments are already underway to make sure a seamless transition as soon as approval is secured.
Extra perception
The merger is unfolding towards the backdrop of the CBN’s banking sector recapitalisation programme, which mandates increased minimal capital thresholds for lenders working at completely different licence tiers.
Below the framework, banks with nationwide licences are required to preserve a minimal capital base of N200 billion forward of a March 2026 deadline.
The proposed mixture of Unity Bank and Providus Bank is anticipated to provide a capital base exceeding the N200 billion requirement, successfully securing their nationwide banking standing inside the stipulated timeline.
What it is best to know
Market analysts observe that the enlarged establishment is prone to profit from stronger steadiness sheet resilience amid Nigeria’s unstable macroeconomic atmosphere. They argue that scale, capital depth, and digital capabilities have gotten more and more decisive in figuring out aggressive benefit.
- Providus Bank brings area of interest company banking capabilities and digital strengths to the merger.
- Unity Bank contributes a longtime retail footprint and SME banking presence.
- The mixed entity is anticipated to deepen market penetration throughout retail and SME segments.
Trade observers recommend the deal may reshape competitors inside Nigeria’s retail and SME banking house, as banks place to adapt to harder regulatory requirements and evolving customer expectations.
Be First to Comment