Under the proposed merger with Providus Bank Limited, Unity Bank shareholders are set to receive either N3.18 per share or 18 Providus Bank shares for every 17 Unity Bank shares they currently hold.
The Federal High Court in Lagos ordered a shareholder meeting for September 26, 2025, where shareholders will review and vote on the proposed payouts, the transfer of assets and liabilities, and other key elements of the merger scheme.
Issued under the hand of Hon. Justice D. I. Dipeolu, the order also empowers Unity Bank’s directors to make any necessary adjustments to the scheme as required by the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), or the court.
Under the merger, all of Unity Bank’s assets, liabilities, properties, intellectual rights, and ongoing legal proceedings will be transferred to Providus Bank.
The scheme further proposes canceling Unity Bank’s share capital, effectively dissolving the bank without winding it up, with ProvidusBank’s certificate of incorporation covering the enlarged entity.
Shareholders will also vote on granting the directors the authority to take all necessary steps to implement the scheme and allow Unity Bank’s solicitors to seek the court’s approval to sanction it, if required.
The merger discussions have been ongoing since 2024, supported by a capital injection from the Central Bank of Nigeria to facilitate the process.
On August 6, 2024, the Central Bank of Nigeria approved the merger of Unity Bank and ProvidusBank, and the following day authorized a N700 billion bailout loan to support the recapitalization of the new banking entity.
This marked the first Nigerian banking merger in five years and was projected to create a network of 231 branches nationwide, with the CBN’s funding ensuring a smoother transition.
The upcoming meeting on September 26, 2025, will give shareholders the opportunity to formally consider and approve the arrangements outlined by the court as part of the merger scheme.