By Abiodun JIMOH
The Federal High Court in Lagos has directed Unity Bank Plc to convene a shareholder meeting on September 26, 2025, to decide on its proposed merger with Providus Bank Limited.
Under the terms of the deal, Unity Bank shareholders are to receive either ₦3.18 per share or 18 Providus Bank shares for every 17 Unity Bank shares they currently hold.
The court order, signed by Justice D.I. Dipeolu, empowers Unity Bank’s directors to make adjustments to the scheme in line with directives from the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), or the court itself.
If approved, the merger will transfer all of Unity Bank’s assets, liabilities, and legal obligations to Providus Bank. Unity Bank’s share capital will be canceled, effectively dissolving the lender without winding it up, while the enlarged Providus entity will operate under its existing certificate of incorporation.
The upcoming vote follows the CBN’s August 2024 approval of the merger and a ₦700 billion bailout designed to recapitalize the new banking entity. The bailout was used partly to settle Unity Bank’s obligations, including ₦303.7 billion in debts, and to strengthen the balance sheet of the merged bank.
This deal marks Nigeria’s first banking merger in five years and is expected to create a combined network of over 230 branches nationwide.
The September 26 meeting will also empower directors and solicitors to finalize legal approvals for the transaction. Voting will be conducted by poll, with shareholders allowed to vote in person or through proxies, while instructions must be submitted by September 23.2025
