Abuja, Nigeria — The Central Bank of Nigeria (CBN) has formally approved a proposed merger between Unity Bank Plc and Providus Bank Limited, marking a major development in the nation’s banking sector.
In a statement attributed to the apex bank’s Acting Director of Corporate Communications, the CBN said it has granted a “no-objection” to the merger and is supporting the transaction with a crucial financial accommodation designed to strengthen the merged entity’s operational base and reinforce financial system stability.
The planned combination of the two banks comes as Nigeria’s banking industry works to meet new recapitalisation requirements set by the CBN. Under these rules, national commercial banks must increase their minimum capital base to N200 billion by the March 2026 deadline. Analysts say the Unity-Providus merger places the combined institution above this threshold and positions it for enhanced competitiveness.
While the CBN’s approval clears a significant regulatory hurdle, the merger still awaits final court sanction and any remaining regulatory clearances before it is fully executed. Both banks’ shareholders had previously endorsed the transaction, and integration planning is ongoing.
Industry observers note that this merger reflects broader consolidation trends in Nigeria’s banking sector as lenders adapt to evolving regulatory and economic landscapes aimed at strengthening resilience and promoting financial inclusion.
