Unity Bank Plc and Providus Bank Limited have confirmed that their proposed merger remains firmly on course, with integration already underway pending final court sanctions.
The update was disclosed in a joint release issued by the lenders on Wednesday, February 18, 2026, following a recently concluded Court-Ordered Meeting.
The banks said the transaction has secured key regulatory approvals, including backing from the Central Bank of Nigeria (CBN), positioning the combined entity to meet the N200 billion capital requirement for national banking operations.
The lenders noted that shareholder approval was overwhelmingly secured, while regulatory clearances have further strengthened confidence in the strategic combination. They also dismissed reports suggesting the merger had stalled, clarifying that outstanding steps are largely procedural.
Once the court grants final sanction, the enlarged institution is expected to emerge among banks that have met the new capital benchmark under the CBN’s recapitalisation framework.
What they are saying
The banks said the transaction has received critical regulatory backing, reinforcing confidence in the integration process and the enlarged institution’s capital strength. According to the release, the CBN provided pivotal financial accommodation to support the merger, underscoring regulatory confidence in the deal.
- “The merger represents a defining milestone that enhances our capital strength, operational scale and competitive positioning,” said Ebenezer Kolawole, Managing Director and Chief Executive Officer of Unity Bank.
- “The complementary strengths of both institutions create a platform capable of delivering stronger value to customers and stakeholders.”
- The Securities and Exchange Commission (SEC) has issued a “no objection” clearance, affirming compliance with capital market and corporate governance requirements.
The lenders added that with the court sanction now the final major step, integration efforts between both institutions are already underway to ensure a seamless transition once approval is secured.
More insight
The merger is unfolding against the backdrop of the CBN’s banking sector recapitalisation programme, which mandates higher minimum capital thresholds for lenders operating at different licence tiers.
Under the framework, banks with national licences are required to maintain a minimum capital base of N200 billion ahead of a March 2026 deadline.
- The recapitalisation programme sets N500 billion as the minimum for international banks and N200 billion for national banks.
- The policy is designed to strengthen systemic stability and enhance capital adequacy across the sector.
- Rising inflation, exchange rate volatility, and tighter liquidity conditions have increased the urgency for stronger capital buffers within the banking system.
The proposed combination of Unity Bank and Providus Bank is expected to produce a capital base exceeding the N200 billion requirement, effectively securing their national banking status within the stipulated timeline.
What you should know
Market analysts note that the enlarged institution is likely to benefit from stronger balance sheet resilience amid Nigeria’s volatile macroeconomic environment. They argue that scale, capital depth, and digital capabilities are becoming increasingly decisive in determining competitive advantage.
- Providus Bank brings niche corporate banking capabilities and digital strengths to the merger.
- Unity Bank contributes an established retail footprint and SME banking presence.
- The combined entity is expected to deepen market penetration across retail and SME segments.
Industry observers suggest the deal could reshape competition within Nigeria’s retail and SME banking space, as banks position to adapt to tougher regulatory standards and evolving customer expectations.
