Providus merges with Unity Bank, now 9th largest bank

Providus Bank and Unity Bank have secured shareholder approval to proceed with their merger, a move set to reshape Nigeria’s banking landscape with one of the largest consolidations in recent years.

The endorsement came at a court-ordered Extraordinary General Meeting (EGM) on Friday, where shareholders and boards of both lenders gave their consent.

The development makes Providus Bank the 9th largest bank in the country by assets.

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In a joint statement, the banks applauded the Central Bank of Nigeria (CBN) for its support, calling the transaction “a critical step in strengthening the financial system.”

“By enabling this transaction, the CBN has reinforced its vision of a sector anchored on resilience and customer trust. This regulatory support is shaping banks that are better positioned to serve businesses, investors, and everyday Nigerians,” the statement noted.

Once finalized, the new entity will operate a network of roughly 230 branches nationwide, immediately ranking among the country’s most expansive institutions.

Providus Bank contributes its track record in innovation and digital banking, while Unity Bank brings decades of nationwide reach and brand recognition. Together, the banks say they will be better equipped to serve SMEs, corporates, government agencies, and households, backed by a strong capital adequacy ratio.

The lenders stressed that the merger goes beyond financial consolidation, pledging to safeguard jobs and provide growth opportunities for employees.

“Employees across both banks will be empowered to contribute to a future-oriented, high-performance organisation,” the statement added.

By combining Providus’ digital-first reputation with Unity’s retail presence, the new bank aims to deliver stronger services, deeper financial access, and enhanced technological offerings.

“The Providus–Unity merger ushers in a new era: a bank that is larger in ambition, broader in reach, and stronger in capacity,” the statement read.

With shareholder approval now secured, both banks will turn their attention to regulatory clearance and integration in the coming months. For Providus, which only launched in 2017, the deal represents a defining moment in its ambition to become a key player in retail banking.

Unity Bank reported assets of N414 billion and deposits of N402 billion as of 2024, with a market capitalization of N19.4 billion before its suspension from trading. Providus Bank, meanwhile, has grown its balance sheet from N373 billion in 2020 to N2.56 trillion in 2024, with deposits at N1.5 trillion and profit after tax of N33 billion.

The merger is supported by a N700 billion bailout loan from the CBN, which had already given formal approval in August 2024.

Under the terms of the deal, shareholders will either receive a N3.18 per share cash payout or exchange 17 Unity Bank shares for 18 shares in the enlarged Providus Bank. With Unity Bank shares last trading at N1.51 before suspension in May 2024, the payout represents a premium of more than 100 percent.