Prosper Okoye
The proposed merger between Unity Bank Plc and Providus Bank Limited has entered its final stage, with integration activities underway following regulatory approval and shareholder backing.
For customers, the main concern is likely to be short-term disruption as the two banks combine systems. Delays in transfers, app outages, ATM issues, and changes to account details could affect daily banking routines. There may also be adjustments to fees and account terms as the banks harmonise their pricing structures. Branch closures or restructuring could affect convenience, but deposits are expected to remain secure under oversight from the Central Bank of Nigeria.
Both banks said the merger follows a court-ordered meeting where shareholders overwhelmingly endorsed the deal, bringing the combined institution closer to meeting recapitalisation requirements set by the central bank. Analysts say the approvals mark a critical step in efforts to strengthen Nigeria’s banking sector and ensure lenders meet new capital thresholds for national operations.
Join our WhatsApp ChannelThe merger has received financial support from the Central Bank of Nigeria, while the Securities and Exchange Commission issued a “no objection” alongside other clearances. It is part of wider reforms aimed at boosting banks’ resilience, capital buffers, and reducing systemic risks in Africa’s largest economy.
The combined bank is expected to have a capital base of over ₦200 billion, meeting the minimum requirement for a national banking licence under the new regulations, placing it among the few lenders to reach the threshold. Shareholders approved the deal at separate extraordinary meetings in September 2025, and final court approval is expected to complete the process.
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Unity Bank’s Chief Executive, Ebenezer Kolawole, described the merger as “transformative”, saying it would strengthen the bank’s capital position and expand its capacity to support customers and economic growth. The bank also dismissed reports that the merger had stalled, saying the remaining steps are largely procedural.
Once completed, the merger is expected to create a larger, more competitive institution with greater scale, improved services, and an enhanced position in retail and small business banking in Nigeria.
Prosper Okoye is a Correspondent and Research Writer at Prime Business Africa, a Nigerian journalist with experience in development reporting, public affairs, and policy-focused storytelling across Africa
