The Supreme Court of Nigeria has finally brought an end to the legal battle over the proposed merger between Providus Bank Limited and Unity Bank Plc. The court dismissed an appeal against the transaction and granted costs of N10 million against the appellants to each of the respondents.
Court Approves Share Swap Deal in Bank Merger Case
A five-member panel of the apex court, presided by Justice Tijani Abubakar, delivered judgment in appeal No. SC/CV/132/2026. The case arose from decisions at the Court of Appeal and the Federal High Court. The panel held that the appeal lacked merit and invoked Section 22 of the Supreme Court Act to give its final sanction for the merger.
Key Provisions of the Merger
The court further held that all property, assets, and undertakings of Unity Bank Plc, including its real property, must be transferred to Providus Bank Limited as contained in the scheme of merger. All proceedings necessary to achieve this should be completed within 10 days. The apex court also approved a consideration of N3.18 per share or 18 Providus Bank shares of 50 kobo each for every 17 Unity Bank shares held by shareholders. Additionally, the Supreme Court ordered the dissolution of the board of directors of Unity Bank Plc without winding up the company and approved the new name for the enlarged entity: ProvidusUnity Bank Plc.
Providus to Take Over
Those against the merger were two shareholders and customers of the banks, who had dragged both Unity Bank and Providus Bank, together with all regulatory agencies and financial advisers in the transaction, to court to halt the proposed merger. The respondents in the suit included the Central Bank of Nigeria, Securities and Exchange Commission, Corporate Affairs Commission, Federal Competition and Consumer Protection Commission, as well as the banks and financial advisers. Delivering the court's decision, the panel held that the appeal lacked merit and dismissed it entirely, imposing costs of N10 million in favour of each respondent.
Legal Experts React
Speaking on the judgment, Senior Counsel to Unity Bank Plc, D.D. Dodo (SAN), described the decision of the Supreme Court as historic. He noted that it has removed the last hurdle to the merger and serves the public interest of the entire banking system in Nigeria.
Nigerian Bank Shuts Down, Updates Social Media to New Name
Earlier, reports indicated that Titan Trust Bank Limited officially changed its social media handles to Union Bank of Nigeria, formally ending its existence as a separate entity. The decision was sealed after the Central Bank of Nigeria finally approved its long-awaited merger. Union Bank stated that both institutions will continue to operate under its 108-year-old brand name.
