…Just Few Regulatory Consent Remaining—Insider
The long journey embarked on by both Providus Bank and ageless Unity Bank to consummate their merger started far away in August 2024. Otherwise, the merger talks were already in motion when the CBN announced its approval for the deal in August 2024 – months after its recapitalisation directive.
Business Hilights gathered that this followed approval by the shareholders of both institutions at separate extraordinary general meetings (EGMs) held as part of the business combination process, following a court order.
Recent checks showed that the process has reached more than 95 percent completion, with only a few regulatory consents remaining.
Recall that both teir-1 banks and emerging ones have been under serious pressure to up their capital base in view of the new recapitalization rule set by the apex bank no doubt, since the regulatory directive was announced, banks have been scrambling to raise capital through various means, including shares and rights issuances, and private placement programmes.
In November 2025, the CBN said 16 banks had fully met the capital requirements, but that number has now exceeded 20.
The regulator raised the capital bases of commercial banks with international licences to N500 billion, while those of national and regional financial institutions were pegged at N200 billion and N50 billion, respectively.
The apex bank also increased the minimum capital requirement of merchant banks to N50 billion for national licence holders.
Unity Bank holds a national licence, while Providus — which has successfully met its capital requirement — operates in the regional banking category.
It is also understood that both banks have been holding meetings to ease workstreams and integration processes.
A top official in Providus Bank confided in our correspondent that “What is left is just to conclude the entire process and meet very few regulatory consents.
“We are counting days. What I mean is that I don’t see it exceeding one month from now for the announcement of the full merger.”
However, sources within Providus Bank revealed that the organisation is currently awaiting a court sanction, following the successful “court-ordered annual general meeting,” maintaining that “In due time, announcements will be made.”
One major advantage of the merger is that it will serve as an elixir for drowning Unity Bank even as the merger deal will amongst other things, give the new entity a balance sheet of up to N3 trillion.
Recalling what Hafiz Mohammed Bashir, chairman of Unity Bank Plc, said at their last EGM in September 2025 that joining forces with Providus would create a stronger, more competitive, and resilient institution, it became very clear that Unity Bank sees the merger as an escape route from disappearing.
One more thing; The completion of the deal is also expected to result in a new name for the enlarged entity called ‘Providus-Unity Bank (PUB)’.
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 added.
