The merger between Unity Bank Plc and Providus Bank Limited has been sanctioned by the Supreme Court, giving way for the emergence of a new single entity, ProvidusUnity Bank Limited.
A five-member panel of the apex court led by Justice Tijani Abubakar on Monday ordered the transfer of all assets, liabilities and undertakings, including real properties, of Unity Bank to Providus Bank in accordance with the approved Scheme of Merger.
The merger between the two lenders was challenged by customers and shareholders of the affected banks, Mr Suleiman Abubakar and Mr Mohammed Goni Modu.
They earlier approached a Federal High Court to stop the transaction via Suit No. FHC/L/MISC/734/2025. The matter later went to an Appeal Court in No. CA/LAG/CV/137/2025, before settling at the apex court in No SC/CV/132/2026.
Delivering judgment yesterday, the Supreme Court held that the appeal lacked merit and accordingly dismissed it in its entirety, while imposing costs of N10 million in favour of each respondent.
While invoking its powers under Section 22 of the Supreme Court Act, the panel sanctioned the merger and directed that the completion of the transfer be made within 10 days of the sanction of the scheme.
As part of the merger arrangements, the apex court approved a consideration of N3.18 per share or 18 Providus Bank shares of 50 kobo each for every 17 Unity Bank shares held by shareholders.
The court also ordered the dissolution of the board of Unity Bank Plc without winding up the institution and approved the adoption of the new name, ProvidusUnity Bank Limited, for the enlarged entity.
The merger forms part of the banking sector recapitalisation programme introduced by the Central Bank of Nigeria (CBN), which encourages financial institutions unable to independently meet new capital thresholds to explore mergers, acquisitions and other strategic combinations.
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