Providus Unity Bank merger nears completion as both banks finalise integration, creating a stronger institution ahead of CBN’s March 2026 recapitalisation deadline

The proposed merger between Providus Bank and Unity Bank has reached its final stage, with an official announcement expected within weeks, sources familiar with the development told TheCable on Tuesday.

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The consolidation is one of three anticipated mergers among tier-2 banks as financial institutions scramble to meet the Central Bank of Nigeria’s March 2026 recapitalisation deadline.

Unity Bank holds a national licence, while Providus operates under a regional banking licence and has already met its capital requirements.

The process, which began following CBN approval in August 2024 and shareholder consent at separate extraordinary general meetings, is now over 90 per cent complete.

Only a few remaining regulatory consents and a final court sanction are pending, according to insiders.

Teams from both banks have been formed to integrate platforms, products, and brands, easing operational alignment ahead of the merger.

Sources described the remaining steps as procedural, with the announcement likely to occur within one month.

Once complete, the post-merger entity, expected to be called Providus-Unity Bank (PUB), will have a balance sheet of up to N3 trillion, significantly strengthening its market position.

Unity Bank shareholders will receive N3.18 per share or 18 ordinary Providus shares for every 17 Unity shares, while Providus will retain its certificate of incorporation.

Speaking at Unity Bank’s EGM in September 2025, Chairman Hafiz Mohammed Bashir described the deal as a pathway to creating a stronger, more resilient, and competitive institution.

Analysts, however, caution that post-merger integration may face challenges.

Also read: Providus Bank, Unity Bank merger boosts banking sector competition

DataPro noted that harmonising IT systems, aligning corporate cultures, and managing non-performing loans could strain smaller banks, even as regulatory reforms drive active mergers and acquisitions across Nigeria’s banking sector.