Lender dismisses speculation of stalled deal, confirms all regulatory approvals secured with final steps 'largely procedural'
Unity Bank Plc has moved to quell speculation about its proposed merger with Providus Bank, issuing a statement Wednesday confirming that the transaction remains firmly on course following key regulatory approvals from the Central Bank of Nigeria and the Securities and Exchange Commission.
The bank's clarification comes amid reports suggesting the merger had encountered obstacles related to insider credits owed by its directors—claims the lender has now firmly rebutted .
Regulatory Backing Secured
In its statement, Unity Bank emphasized that the CBN has backed the merger with "pivotal financial accommodation to support the transaction." The SEC has also granted its "no objection" nod, providing the regulatory green light necessary for the deal to proceed .
"The regulatory approvals form part of broader efforts to strengthen the resilience of Nigeria's banking system, reinforce capital adequacy across the sector, and mitigate potential systemic risks," the bank stated .
Capital Threshold Achieved
According to the lender, the combined entities will boast a capital base exceeding N200 billion—the minimum required to retain a national banking licence under the CBN's recapitalisation framework. This positions the merged institution among the 21 banks that have so far satisfied the apex bank's new capital requirements .
"The transaction has since progressed with additional regulatory clearances from the SEC and other relevant authorities. Integration activities between the two institutions are currently underway, with final court sanction expected to conclude the process," the statement added .
CEO: 'A Defining Moment'
Ebenezer Kolawole, Managing Director and CEO of Unity Bank, described the milestone as transformative for the institution.
"This milestone underscores our commitment to building a stronger, more resilient bank that can deliver greater value to our customers and stakeholders," Kolawole said. "The merger with Providus Bank significantly enhances our capital base, operational capacity, and strategic positioning. We are confident that the combined institution will be better equipped to support economic growth and deliver innovative financial solutions across Nigeria" .
Addressing the Rumors
The bank directly addressed media reports suggesting the merger had stalled, stressing that all necessary regulatory approvals have been secured and that remaining steps are largely procedural.
"...the transaction remains firmly on track. The necessary regulatory steps have been completed, with a few other steps only a matter of formality," the bank insisted .
Background
Shareholders of Unity Bank approved the merger with Providus Bank on September 26, 2025. Under the scheme, all assets, liabilities, and undertakings of Unity Bank will be transferred to Providus Bank, while all legal proceedings involving Unity Bank will continue in the name of Providus Bank after court sanction .
As part of the consideration, Unity Bank shareholders will either receive N3.18 per share or be allotted 18 ordinary shares of Providus Bank for every 17 shares previously held in Unity Bank .
The transaction is expected to create a stronger, more competitive financial institution capable of meeting the challenges of Nigeria's evolving banking landscape while satisfying the CBN's increased capital requirements for national banking operations.
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