Unity Bank PLC has announced that a court-ordered meeting of its shareholders will be held on September 26, 2025, in Abeokuta to vote on a proposed merger with ProvidusBank Limited.
The move marks a landmark development in Nigeria’s banking industry, representing the first consolidation under the Central Bank of Nigeria’s (CBN) 2024 recapitalisation directive.
The Federal High Court in Lagos, on July 17, 2025, ordered the convening of the meeting under the Companies and Allied Matters Act, 2020.
According to the notice issued by
Unity Bank in a notice to shareholders holding fully paid ordinary shares are expected to attend or appoint proxies to vote on the scheme of merger outlined in a scheme document dated June 25, 2025.
Under the terms of the transaction, ProvidusBank will absorb Unity Bank’s assets, liabilities, and operations, with Unity Bank dissolved without winding up.
The enlarged institution will continue under ProvidusBank’s certificate of incorporation, while all existing legal proceedings involving Unity Bank will be transferred to ProvidusBank.
Unity Bank shareholders are being offered a scheme consideration of either ₦3.18 in cash per share or a share swap of 18 Providus shares for every 17 Unity shares.
The approval of at least 75 per cent in value of shares held by those present or represented by proxy will be required for the scheme to pass. Voting will be conducted by poll.
The notice further stated that the meeting’s agenda includes several special resolutions, such as the cancellation of Unity Bank’s share capital, and authorising directors to accept modifications requested by regulators including the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN).
Hafiz Mohammed Bashir, Chairman of the Board, is expected to preside over the meeting, with the Managing Director, Ebenezer A. Kolawole, or another director acting as alternate chair if necessary.
The register of members will close on September 19, 2025, to determine eligibility for participation. Shareholders must submit proxy forms to the registrar no later than 24 hours before the meeting, while questions regarding the scheme may be sent to the company secretary up until September 23, 2025.
The merger comes against the backdrop of the CBN’s recapitalisation exercise announced in March 2024, which significantly raised minimum capital requirements across the banking sector.
International banks were required to increase capital from ₦50 billion to ₦500 billion, while national banks had their thresholds raised to ₦200 billion. The directive aims to strengthen resilience against inflationary pressures, naira volatility, and global uncertainties.
Unity Bank has faced long-running financial pressures, with negative shareholders’ funds reported by 2024 due to non-performing legacy loans, weak profitability, and low capital adequacy.
To facilitate the transaction, the CBN approved the merger on August 7, 2025, and provided financial accommodation of about ₦700 billion to close Unity Bank’s capital gap, a move Analysts described as a stabilisation measure, preventing systemic disruption and safeguarding depositors.
ProvidusBank, licensed in 2016, has gained recognition for its digital-first strategy, fintech partnerships, and corporate banking focus. Its agility in urban and digital markets is seen as a strong complement to Unity Bank’s 200-branch nationwide network and established presence in SME and agricultural lending.
Wider Implications
Industry watchers note that the enlarged ProvidusBank is expected to enhance operational efficiency by combining Unity Bank’s wide physical footprint with ProvidusBank’s digital infrastructure. The synergy could strengthen the bank’s competitive position in Nigeria’s mid-tier banking space, enabling it to capture a broader share of SME and agricultural financing while advancing digital banking adoption.
For customers, both banks have assured continuity of service, though industry experts anticipate some rationalisation of branches and workforce as part of integration. For shareholders, the merger offers either immediate liquidity through cash payout or longer-term value through holding shares in a stronger, digitally oriented institution.
Beyond Unity and Providus, the deal is being closely watched across the financial industry as a possible trigger for further consolidations. With more than 20 banks operating in Nigeria, analysts expect similar mergers and acquisitions as institutions race to meet the new recapitalisation thresholds before the March 31, 2026 deadline.
The notice of the meeting, dated August 29, 2025, was issued by Adepetun Caxton-Martins Agbor & Segun, solicitors to Unity Bank.
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