Providus Bank has received court approval to acquire the distressed Unity Bank Plc, capping a year-long effort by regulators to engineer a rescue for the struggling lender. The deal will create a combined entity with a balance sheet of up to ₦3 trillion ($1.8 billion).
The court-sanctioned merger follows Unity Bank’s struggle with a staggering ₦203 billion in impaired loans recorded at the close of the 2023 financial year. The Central Bank of Nigeria had previously injected a ₦700 billion facility to support the post-merger entity, signalling a move to prevent an unstable financial sector.
Shareholders of Unity Bank are scheduled to meet on September 26 in Abeokuta to vote on the scheme, according to an NGX filing dated September 2, 2025. They will be offered ₦3.18 in cash for each share they hold or an allotment of 18 ordinary shares in Providus Bank for every 17 shares held in Unity Bank. The court nominated the Board Chairman, Hafiz Mohammed Bashir, Ebenezer Kolawole, the Managing Director of the Bank or failing them both, any other director appointed by the shareholders present to act as chairman of the said meeting and report the results thereof to the court.
Following the transaction, Unity Bank’s entire share capital will be cancelled and the bank will be dissolved without a formal winding-up process. All assets, liabilities, and ongoing legal proceedings will be transferred to Providus Bank, which has built a stronger market reputation through its banking-as-a-service platform.
The move is a strategic expansion for Providus, allowing it to rapidly scale its assets by absorbing a rival weakened by non-performing loans. For Unity Bank, it marks the end of the road after a period of significant financial distress that included a notable reduction in its workforce.
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