Unity Bank and Providus Bank Merger Surpasses CBN's N200 Billion Capital Benchmark
The proposed merger between Unity Bank Plc and Providus Bank Limited has achieved a significant regulatory milestone by exceeding the N200 billion minimum capital requirement mandated by the Central Bank of Nigeria for national banking licenses. This development positions the combined entity well above the recapitalisation threshold established by Nigeria's banking regulator.
Regulatory and Shareholder Support Paves the Way
In a statement released on Wednesday, February 18, 2026, Unity Bank confirmed that the strengthened capital base of the two financial institutions now comfortably surpasses the Central Bank's recapitalisation requirements. The bank also addressed circulating reports suggesting the merger process had stalled, clarifying that integration activities are actively progressing.
The merger has received substantial backing from both regulatory authorities and shareholders. In September 2025, shareholders from both institutions formally approved the scheme of merger during a court-ordered meeting, providing essential approval for the business combination. The Central Bank of Nigeria, under the leadership of Governor Olayemi Cardoso, has signaled strong support for the transaction by providing financial accommodation to facilitate the process.
Additionally, the Securities and Exchange Commission has issued a "no objection" approval, alongside other relevant regulatory authorities. With these approvals secured, the final court sanction is now anticipated to formally conclude the merger process, marking the official completion of this significant banking sector transaction.
Enhanced Financial Stability and Competitive Positioning
Ebenezer Kolawole, Managing Director and Chief Executive Officer of Unity Bank, described surpassing the N200 billion capital benchmark as a defining moment for the institution. He emphasized that this achievement underscores the bank's commitment to building a more resilient and future-ready financial institution capable of navigating Nigeria's evolving banking landscape.
According to Kolawole, the merger substantially enhances the combined entity's capital base, operational capacity, and strategic positioning within Nigeria's competitive banking industry. The strengthened financial foundation will enable the institution to deliver more innovative financial solutions while providing enhanced support for economic growth initiatives across Nigeria.
Benefits for Customers and Small Businesses
When finalized, the Unity-Providus merger is projected to create a stronger, more customer-focused institution with significantly greater scale and reach. The enlarged bank is expected to deepen its presence in retail banking and small-to-medium enterprise banking sectors, which are widely recognized as critical components of Nigeria's economic expansion strategy.
By consolidating resources, technology platforms, and specialized expertise, the combined institution aims to improve service delivery mechanisms, expand product offerings, and strengthen risk management frameworks under the recapitalisation guidelines introduced by the Central Bank of Nigeria. This consolidation represents part of a broader trend within Nigeria's banking sector, driven by stricter capital requirements and the industry-wide need for more robust balance sheets.
Industry Context and Market Implications
With its capital position now firmly above regulatory thresholds and final court approval within sight, the Unity-Providus merger appears positioned to reshape both institutions into a more competitive force within Nigeria's national banking space. This development coincides with positive momentum in Nigeria's financial markets, as evidenced by the Nigerian Exchange Banking Index rising more than 10 percent year-to-date in 2026.
Industry analysts interpret these market gains as reflecting not only a recovery from previous regulatory challenges but also a broader transformation of Nigeria's banking sector into more resilient, digitally advanced, and strategically positioned financial institutions. The successful completion of the Unity-Providus merger would represent a significant step in this ongoing sectoral evolution, potentially setting precedents for future banking consolidations in Nigeria.
