Supreme Court upholds Providus, Unity Banks merger

The Supreme Court has dismissed an appeal challenging the merger between Providus Bank Limited and Unity Bank Plc, effectively affirming the consolidation of the two financial institutions.

A five-member panel of the apex court, in a unanimous judgment delivered by Justice Tijani Abubakar, ruled that the appeal lacked merit and upheld the earlier decision of the Court of Appeal.

The appellants, Suleiman Abubakar and Mohammed Goni Modu—customers and shareholders of the banks—had sought to overturn the merger, naming Providus Bank, Unity Bank, PAC Capital Limited, Vetiva Advisory Services Limited, Lighthouse Capital Limited, Planet Capital Limited, the Corporate Affairs Commission, the Federal Competition and Consumer Protection Commission, the Securities and Exchange Commission, and the Central Bank of Nigeria as respondents.

In the appeal marked SC/CV/132/2026, the Supreme Court not only dismissed the case but also invoked its powers under Section 22 of the Supreme Court Act to affirm and give final effect to the merger between the two banks.

The ruling brings an end to legal disputes surrounding the consolidation, which had been pursued as part of efforts to meet the recapitalisation requirements of the Central Bank of Nigeria.

The merger process began in July 2025 when Providus and Unity Banks approached the Federal High Court seeking approval to convene separate meetings of shareholders and directors to consider the scheme. Both institutions later approved the merger, which was subsequently sanctioned by the court.

Dissatisfied with the process, the appellants—though not originally parties to the merger agreement—sought to be joined as interested parties and requested the dissolution of the arrangement. While they were granted joinder at the trial court, their application became a subject of further legal contest, eventually reaching the Court of Appeal before proceeding to the Supreme Court.

With Monday’s judgment, the apex court effectively closed all litigation surrounding the merger, providing final legal backing to the consolidation of Providus Bank and Unity Bank.