Providus Bank Limited is set to take over the operations and corporate identity of Unity Bank Plc, pending shareholder approval of the proposed merger between both institutions.
According to a court-ordered notice, Unity Bank shareholders are scheduled to meet on September 26, 2025, to vote on the scheme of merger. The decision will determine whether Unity Bank will cease to exist as a standalone entity and become part of an enlarged Providus Bank.
If the merger is approved, Unity Bank’s entire share capital will be cancelled, effectively dissolving the lender’s independent corporate status. Providus Bank’s certificate of incorporation would then serve as the legal identity of the combined financial institution.
The scheme consideration provides Unity Bank shareholders with two options:
- Cash payout: N3.18 per share for every Unity Bank share held.
- Equity swap: 18 Providus Bank ordinary shares of N0.50 each in exchange for every 17 Unity Bank shares.
Additional resolutions to be discussed at the meeting include:
- The continuation of all existing legal proceedings involving Unity Bank under the Providus Bank name once the merger is sanctioned by the court.
- Authorisation for Unity Bank’s directors to make regulatory adjustments as required by the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).
- A mandate for Unity Bank’s solicitors to obtain all necessary court approvals to bring the merger into full effect.
The court has appointed Unity Bank’s Chairman, Hafiz Mohammed Bashir, or in his absence, Managing Director Ebenezer A. Kolawole, to preside over the meeting, which will take place at OOPL Hotel in Abeokuta. Shareholders may attend in person or be represented by proxy, with the merger requiring approval from at least three-quarters in value of the shares held.
If sanctioned, the merger will mark the end of Unity Bank’s independent operations, while positioning Providus Bank as a stronger player in Nigeria’s mid-tier banking sector. Analysts suggest the deal could significantly reshape the nation’s financial landscape by consolidating assets, liabilities, and customer bases into a single institution.
