Unity Bank Plc and Providus Bank Limited confirmed that their proposed merger remains on track, with integration processes already underway ahead of the final court sanction.
The update, disclosed in a joint release on Wednesday, February 18, 2026, follows a Court-Ordered Meeting where shareholders of both institutions overwhelmingly approved the strategic combination.
The banks emphasized that the transaction has secured key regulatory approvals, notably backing from the Central Bank of Nigeria (CBN) and a “no objection” clearance from the Securities and Exchange Commission (SEC). With these endorsements, the enlarged institution is expected to meet the N200 billion minimum capital requirement for national banks under the CBN’s recapitalization programme, which mandates higher capital thresholds to strengthen systemic stability.
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“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.”
Regulatory support has been pivotal to the deal. Beyond formal approvals, the CBN provided financial accommodation to facilitate the merger, signaling confidence in the strategic rationale of the combination. The SEC’s clearance further affirms that the merger complies with capital market rules and corporate governance standards, mitigating potential legal or procedural bottlenecks.
Preparatory integration work has already begun, even before the court sanction is granted. Analysts note that such early steps are crucial for ensuring a seamless transition, encompassing the alignment of core banking systems, harmonization of risk management and compliance frameworks, governance restructuring, and consolidation of operational processes. These preemptive measures aim to minimize service disruption and strengthen the combined institution’s competitive posture once formal approval is secured.
The merger comes amid heightened macroeconomic volatility in Nigeria that some believe contributed (besides mismanagement) to the banks’ troubles. High inflation, exchange rate fluctuations, and tighter liquidity conditions have increased pressure on banks to maintain robust capital buffers. By merging, Unity Bank and Providus Bank aim to create an institution with sufficient scale and resilience to weather economic headwinds, maintain liquidity, and continue funding critical sectors of the economy.
Strategically, the deal unites complementary strengths. Providus Bank is recognized for its niche corporate banking capabilities and strong digital platform, while Unity Bank brings an extensive retail footprint and established SME banking operations. The resulting institution is expected to deepen market penetration across both retail and corporate segments, offering broader services and improved technology-driven solutions. Analysts suggest that this combination could set a new benchmark for efficiency and digital adoption in Nigeria’s banking sector.
Beyond compliance, the merger may generate significant competitive advantages. A stronger balance sheet can support larger lending volumes, facilitate access to wholesale funding, and improve investor confidence. Economies of scale are also expected to reduce operational costs per transaction, while combined technological resources could accelerate innovation in digital banking, mobile platforms, and customer service automation.
The timing of the merger is closely tied to the CBN’s recapitalization programme, which sets a March 2026 deadline for banks with national licenses to meet a N200 billion minimum capital base. Banks with international licenses must reach N500 billion. The programme is designed to bolster systemic stability, enhance capital adequacy, and ensure that institutions are resilient enough to sustain lending activity in Nigeria’s challenging economic environment.
Market observers have noted that more mergers are expected in the banking sector. As the CBN deadline approaches, smaller or undercapitalized banks may look for strategic partnerships to preserve license status or enhance competitiveness. The Unity–Providus combination illustrates how institutions are leveraging mergers not merely as compliance mechanisms but as strategic tools to expand market reach, diversify services, and strengthen operational foundations.
Once the court grants final sanction, the combined bank will officially enter Nigeria’s national banking tier with a capital base exceeding N200 billion.