The Supreme Court on Monday put to rest all legal objections to the merger between Unity Bank Plc and Providus Bank Limited, dismissing a final appeal challenging the consolidation and effectively clearing the way for full integration of both institutions.
A five-member panel of the apex court delivered a unanimous judgement, ruling that the appeal filed by two shareholders lacked merit. The court also ordered the appellants to pay N10 million in costs to each of the respondents involved in the case.
In a decisive move, the Supreme Court relied on Section 22 of its Act to affirm the merger scheme, giving it direct judicial backing and removing any remaining procedural hurdles to its implementation.
The court further directed that all assets, liabilities, and undertakings of Unity Bank, including real estate holdings, be fully transferred to Providus Bank. It ordered that the entire transition be completed within 10 days.
It also endorsed the agreed valuation terms for shareholders, fixing compensation at N3.18 per share or an exchange option of 18 shares of Providus Bank for every 17 shares of Unity Bank.
As part of the restructuring framework, the court approved the dissolution of Unity Bank’s board without liquidation of the company and sanctioned the adoption of a new combined identity, ProvidusUnity Bank Limited, for the enlarged entity after completion.
The legal challenge was initiated by shareholders Suleiman Abubakar and Mohammed Modu, who had earlier approached the Federal High Court and the Court of Appeal before taking the matter to the Supreme Court in a final bid to stop the transaction.
The merger process began in August 2024 after approval by the Central Bank of Nigeria, which said the initiative was part of efforts to strengthen financial system stability and reduce risks within the banking sector.
The apex bank later granted final regulatory consent in August 2025, in line with ongoing reforms requiring banks to meet new minimum capital thresholds ahead of the 2026 compliance deadline.
The transaction also received shareholder approval at an extraordinary general meeting in September 2025, following an earlier Federal High Court order in Lagos.
Regulatory agencies, including the Securities and Exchange Commission and the Federal Competition and Consumer Protection Commission, participated as respondents in the case.
With the ruling, analysts say the consolidation marks a major step in Nigeria’s ongoing banking sector reforms, aimed at strengthening institutions and improving resilience amid stricter capital requirements.
Leave a Reply