Unity Bank Plc is set for a shareholder vote on a proposed merger with Providus Bank, including a ₦3.18 per share payout, at a court-ordered meeting on September 26, 2025. This merger will transfer all of Unity Bank’s assets and liabilities to Providus Bank, effectively dissolving Unity Bank while incorporating it into the larger entity.
The Central Bank of Nigeria (CBN) first approved the merger in August 2024, followed by a ₦700 billion bailout loan to strengthen the new entity’s balance sheet. Of this package, ₦303.7 billion was allocated to settle Unity Bank’s obligations, ₦92 billion owed to First Bank of Nigeria, ₦51.7 billion to the CBN under the Anchor Borrowers’ Scheme, and ₦135 billion to NIRSAL. The balance, ₦392.3 billion, was invested in a 20-year FGN bond, qualifying as tier-2 capital.
If approved, the merger will create a network of 231 branches across Nigeria, enhancing its capital and competitiveness. Analysts find the ₦3.18 payout appealing as it offers immediate value alongside long-term growth prospects. Shareholder approval is crucial for regulatory backing from the SEC and CBN, with voting options via in-person or proxy before the September 23 deadline. This merger marks the first in Nigeria’s banking sector in five years, aimed at driving growth and customer confidence.
