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By ETIM ETIM
Negotiations over the proposed merger of Providus Bank and Unity Bank have been stalled over the huge amount of insider credits owed by the directors of Unity Bank.
The exact amount of the loan is not clear, but a well-informed management staff of Unity Bank said ‘’it is not less than N4.8 billion’’. The proposed bank would be known as Providus-Unity Bank and is expected to be one of the largest banks in the country.
Join our WhatsApp ChannelThe directors of Unity Bank are pushing for the debts to be written off, but Providus management and directors are vehemently opposed to such a move, citing regulatory reasons and insisting that the debtors must pay off their obligations before the merger progresses.
The standoff is threatening the merger of the two institutions with only six weeks to the recapitalization deadline set by the CBN. If the deal succeeds, Providus will automatically become a national bank, upgrading from a regional operator.
Despite the hiccup, both parties are eager to make the deal work as it would create the 9th largest lender in Nigeria by assets with N5.3 trillion in assets and N3.2 trillion in deposits. The two institutions have already approached a Federal High Court to obtain a court-ordered approval for extra ordinary General Meetings of their respective shareholders that would approve the scheme of merger of the two institutions.
READ ALSO : Recapitalisation: Unity Bank Shareholders Approve Merger with Providus Bank
Unity, Providus Banks Merger Will Avert Systemic Risks, Boost Financial System – CBN
The merger is touted by both banks as a strategic move that would strengthen their position in the market, enhance service offerings and improve competitiveness. The combined entity boasts 229 branches and a 3.6 million customer base. But industry analysts are urging caution. ‘’The merger is a welcome development, but I am not surprised that the Providus guys are being careful. The CBN does not take kindly to the issues of insider abuse. We have seen the CBN apply severe punishment on Boards that were indicted of such violations in the past’’, said Patrick Osadebe, a renowned industry analyst.
Unity Bank’s executive directors are Ebenezer Kolawole, Acting Managing Director/CEO and Usman Abdulqadir, Executive Director of Enterprise Risk Management & Compliance. Non-Executive directors are he non-executive directors of Unity Bank are Hajiya Yabawa Lawan Wabi; Hajiya Halima Babangida and Prof. Iyabo Obasanjo, an Associate Professor, Faculty Affiliate, Africana Studies Program at College of William and Mary, Williamsburg, Virginia, USA. Others are: Sam N. Okagbue, an independent director and managing partner of George Ikoli and Okagbue (GI&O) law firm and Hafiz Mohammed Bashir who is the Chairman of the Board, with vast experience in public and private sectors. It is not clear who among them are the delinquent debtors.
Unity Bank was the last of the 25 banks that emerged after the massive industry consolidation that was concluded at the end of 2025. The nine banks that merged to form Unity Bank in January 2006 were included Intercity Bank; First Interstate Bank; Tropical Commercial Bank; Pacific Commercial Bank; Societe Bancaire; NNB International Bank; Bank of the North and New Africa Bank.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
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