Supreme Court Backs Unity Bank-Providus Merger, Approves Creation Of ProvidusUnity Bank

Nigeria’s Supreme Court has brought an end to the legal battle surrounding the merger between Unity Bank Plc and Providus Bank Limited, dismissing an appeal seeking to stop the transaction and formally sanctioning the merger.

In a judgment delivered by a five-member panel led by Justice Tijani Abubakar, the apex court approved the transfer of all assets, liabilities and undertakings of Unity Bank to Providus Bank and directed that the process be completed within 10 days. The court also dissolved the board of Unity Bank without winding up the institution and approved the new name ProvidusUnity Bank Limited for the enlarged entity.

The court further upheld the merger terms, under which Unity Bank shareholders will receive either ₦3.18 per share or 18 Providus Bank shares for every 17 Unity Bank shares held.

The merger is part of the banking sector recapitalisation programme introduced by the Central Bank of Nigeria, aimed at encouraging banks that may struggle to meet new capital requirements to pursue mergers and acquisitions. The combined institution has already surpassed the ₦200 billion capital threshold required for a national banking licence.

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Senior Advocate of Nigeria D.D. Dodo, counsel to Unity Bank, described the ruling as a historic decision that removes all legal obstacles to the merger and strengthens confidence in ongoing banking sector reforms.

The judgment effectively closes all litigation surrounding the transaction and paves the way for one of the most significant banking consolidations in Nigeria’s recent history.