The merger between Providus Bank Limited and Unity Bank Plc, approved by Unity shareholders with 99.32% support on September 26, 2025, marks a transformative step in Nigeria’s banking sector under the Central Bank of Nigeria’s (CBN) recapitalization reforms.
This deal, backed by a N700 billion CBN bailout loan, merges Providus’s innovative, digital-first approach with Unity’s extensive legacy network to form Providus-Unity Bank (PUB). By addressing Unity’s financial challenges and leveraging Providus’s robust performance, the merger aims to create a stronger, more competitive institution aligned with Nigeria’s trillion-dollar economy goals.
The CBN’s initial approval in August 2024 underscores its commitment to fostering resilient banks capable of driving economic growth.
Financially, the merger combines Unity’s N414 billion in assets and N402 billion in deposits with Providus’s N2.56 trillion balance sheet and N33 billion profit after tax. Unity shareholders will receive N3.18 per share in cash or 18 Providus shares for every 17 Unity shares, with Unity’s share capital canceled and the entity dissolved without winding up.
Providus will retain its certificate for the enlarged bank, which will operate around 230 branches nationwide, blending Unity’s 211-branch network across all 36 states and the FCT with Providus’s 23 locations. This expanded footprint, paired with integrated digital platforms like Unifi and ProvidusPlus, will enhance retail banking and SME lending in sectors such as agriculture and e-commerce.
Strategically, the merger elevates Providus from a niche, tech-driven player into a national competitor, challenging larger banks in retail and digital services. By merging Unity’s traditional customer base, particularly in northern Nigeria, with Providus’s innovative technology, PUB aims to deliver cost efficiencies and broader access to underserved regions.
The deal strengthens sector confidence, aligns with the CBN’s vision for customer-focused banking, and may accelerate consolidation among mid-tier lenders, especially after the Heritage Bank liquidation. It positions PUB to compete aggressively while supporting Nigeria’s economic ambitions through a more robust financial system.
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The merger promises to protect jobs, improve employee welfare, and create career opportunities within a high-performance organization. Customers will benefit from enhanced services and a stronger financial foundation, with PUB prioritizing innovation and inclusivity.
As regulatory approvals finalize, the success of this union will depend on seamless technology integration and cultural alignment. By setting a precedent for future consolidations, the Providus-Unity merger not only fortifies the participating banks but also contributes to a dynamic, competitive banking sector essential for Nigeria’s development.
