In a major development within Nigeria’s banking sector, shareholders of both Providus Bank and Unity Bank have officially approved plans for a strategic merger between the two financial institutions, marking a significant step towards consolidation and strengthening of their market positions. The approval was given during separate Extraordinary General Meetings (EGMs) held by the banks, where stakeholders voted in favour of the proposed business combination aimed at enhancing operational scale and capital adequacy.
KIIN360 gathered that the merger, once finalised, will create a stronger, more competitive financial institution positioned to play a bigger role in Nigeria’s evolving banking landscape.
Both banks confirmed that the decision was taken in alignment with regulatory expectations, especially following the Central Bank of Nigeria’s (CBN) recent directive for commercial banks to significantly raise their capital base to bolster financial system stability.
According to officials from both institutions, the merger will not only help meet the new capital threshold but also improve service delivery, technological innovation, and customer experience across retail and corporate banking segments. The newly consolidated entity is expected to leverage Providus Bank’s reputation for digital banking excellence alongside Unity Bank’s extensive retail network and legacy in grassroots banking.
A statement from one of the banks described the shareholders’ endorsement as “a clear vote of confidence” in the long-term strategy of the proposed union, noting that the integration process will now proceed with regulatory filings and final approvals from the CBN, the Securities and Exchange Commission (SEC), and other relevant authorities.
Market analysts say the deal could pave the way for further consolidation in the banking sector, especially as mid-tier and smaller banks look for ways to meet the new minimum capital requirements set by the apex bank, which has given lenders a deadline of March 2026 to fully comply. Under the CBN’s recapitalisation framework, commercial banks with national licences are expected to raise their minimum capital to ₦200 billion, while those with regional licences must meet a ₦50 billion threshold.
Providus Bank, known for its premium banking services and strong fintech partnerships, and Unity Bank, with a long-standing presence in the Nigerian financial ecosystem, are optimistic that their combined strengths will create a dynamic institution capable of delivering more robust financial solutions to individuals, SMEs, and large corporates.
As the banking sector braces for more mergers and acquisitions, stakeholders are watching closely to see how this proposed union will shape competition, customer service, and financial inclusion in Africa’s largest economy. The successful completion of the merger between Providus and Unity Bank could potentially set a precedent for others navigating the rapidly changing regulatory and economic environment.
