The proposed merger between Providus and Unity banks has reportedly reached the final stage, with an official announcement expected soon, according to reports.
As tier-2 lenders rush to meet the Central Bank of Nigeria’s (CBN) recapitalisation deadline, the merger is one of three consolidations anticipated in early 2026.
The current state of the consolidation attempts was confirmed by sources who were aware of the situation, both inside and outside of both organisations.
Recall that the CBN raised the minimum capital requirement for Nigerian commercial banks in March 2024 and set a deadline of March 2026.
While the capital bases of national and regional financial institutions were set at N200 billion and N50 billion, respectively, the regulator increased the capital bases of commercial banks with international licenses to N500 billion.
Additionally, the apex bank raised the minimum capital requirement for merchant banks to N50 billion for those with national licenses.
Banks have been rushing to raise money through a variety of strategies, such as the issuance of shares and rights and private placement programs, since the regulatory instruction was made public.
The CBN said that 16 banks had fully satisfied the capital criteria in November 2025, but as of right moment, that figure has surpassed 20.
While Providus bank, which has successfully fulfilled its capital requirement, operates in the regional banking category, Unity Bank has a national license.
The merger talks were already in motion when the CBN announced its approval for the deal in August 2024 – months after its recapitalisation directive.
Following a court order, this was approved by the shareholders of both institutions at separate extraordinary general meetings (EGMs) convened as part of the business combination procedure.
According to TheCable, the process is currently over 90% complete, with just a few regulatory consents needed.
It is also known that discussions have been held by both banks to facilitate workstreams and integration procedures.
Teams from the two organisations have been assembled to start integrating platforms, goods, and brands, according to sources.
UNITY BANK’S FUTURE
lthough the purchase is anticipated to provide the post-merger firm with a balance sheet of up to N3 trillion, Unity, a bank with a lengthy history of difficulties, uses it as a way out of bankruptcy.
Hafiz Mohammed Bashir, chairman of Unity Bank Plc, stated during the EGM in September of last year that partnering with Providus would make the organisation stronger, more resilient, more competitive.
The expanded organisation is anticipated to be renamed “Providus-Unity Bank (PUB)” upon the deal’s completion.
Under the scheme consideration — as disclosed in a statement dated September 26, 2025 — Unity Bank shareholders will receive N3.18 per share or be allotted 18 ordinary shares of N0.50 kobo each in Providus (credited as fully paid) for every 17 ordinary shares of Unity Bank held.
“Upon completion, Unity Bank’s entire share capital will be cancelled, and the Bank dissolved without winding up, while Providus Bank Limited will retain its certificate of incorporation as the enlarged bank,” the statement reads.
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