Providus Bank and Unity Bank have secured shareholder approval to merge, creating probably the most vital consolidations in Nigeria’s banking sector lately.
The choice adopted a court-ordered Extraordinary Normal Assembly (EGM) held on Friday, the place boards and shareholders of each banks gave their consent.
The approval represents a serious step towards constructing a bigger, extra aggressive monetary establishment in step with Nigeria’s ongoing banking reforms.
A vote of confidence within the monetary system
In a joint assertion, the 2 banks expressed appreciation to the Central Bank of Nigeria (CBN) for backing the transaction, describing it as a vital step in strengthening the monetary system.
In line with the assertion, the apex bank’s function underscores its dedication to constructing a resilient sector that evokes confidence amongst traders, companies, and odd Nigerians.
- “By enabling this transaction, the CBN has bolstered its imaginative and prescient of a sector anchored on resilience and customer belief. This regulatory help is shaping banks which can be higher positioned to serve companies, traders, and on a regular basis Nigerians,” the assertion famous.
Scale and attain
When accomplished, the merged establishment will debut with an in depth community of about 230 branches nationwide, instantly rating it among the many most expansive banks in Nigeria.
- Providus Bank brings its monitor document in innovation, digital banking, and customer-centric providers, whereas Unity Bank contributes large geographic attain and a long time of name fairness.
- Mixed, the lenders say they are going to be higher positioned to help households, SMEs, corporates, and authorities establishments.
- The merged entity will even launch with a powerful capital adequacy ratio, an important metric for competitiveness underneath Nigeria’s evolving banking reforms.
Jobs and other people
Each banks emphasised that the transaction isn’t merely about steadiness sheets, however about individuals and livelihoods.
The merger is predicted to safeguard jobs, defend worker welfare, and create new profession alternatives in a bigger, stronger establishment.
“Workers throughout each banks will likely be empowered to contribute to a future-oriented, high-performance organisation,” the assertion added.
A bank for the long run
The brand new bank will mix Providus Bank’s popularity for innovation with Unity Bank’s nationwide attain, providing clients improved providers backed by enhanced capital power and expertise.
Administration of each lenders positions the deal as a part of Nigeria’s broader ambition to construct banks that may play a catalytic function in attaining a trillion-dollar financial system.
- “The Providus–Unity merger ushers in a brand new period: a bank that’s bigger in ambition, broader in attain, and stronger in capability,” the assertion learn.
With approvals from shareholders now secured, the main focus shifts to securing regulatory clearance and finishing operational integration within the months forward.
- The acquisition indicators a defining second for Providus Bank, which started operations in 2017 and has grown into one among Nigeria’s fastest-rising monetary establishments.
- Identified for its digital-first technique and SME-friendly choices, Providus has constructed a powerful popularity amongst startups and youthful clients.
- Unity Bank’s over 211-branch community will give Providus the bodily footprint and nationwide banking license it must scale retail operations.
- The merger additionally helps Providus’ broader ambition to develop into a number one participant in Nigeria’s retail banking area.
A recap of financials
As of 2024, Unity Bank reported complete belongings of about N414 billion (unaudited) and customer deposits of N402 billion. Its market capitalization was N19.4 billion earlier than suspension.
- Providus Bank, in distinction, had grown its steadiness sheet from N373 billion in 2020 to N2.56 trillion in 2024.
- Buyer deposits stood at N1.5 trillion, whereas revenue after tax got here in at N33 billion, down barely from N43.5 billion the earlier 12 months.
- The merger is backed by a N700 billion bailout mortgage from the Central Bank of Nigeria (CBN), which additionally granted formal merger approval in August 2024.
What you must know
A Federal Excessive Courtroom order issued earlier this month by Justice D.I. Dipeolu directs Unity Bank to convene a shareholder assembly on September 26, 2025, to vote on the proposed merger with Providus Bank.
- Shareholders will likely be requested to approve a N3.18 per share money payout or go for an trade of 17 Unity Bank shares for 18 shares within the enlarged Providus Bank.
- Unity Bank shares have been suspended from buying and selling since Could 2024, having final closed at N1.51. The N3.18 provide due to this fact represents greater than a 100% premium.
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