Unity Bank and Providus Bank's merger is finally approved by the Supreme Court.

 

One of the largest consolidations in Nigeria's banking sector is now complete thanks to the Supreme Court's approval of the union of Unity Bank and Providus Bank. 

Customers and owners of the impacted banks, Suleiman Abubakar and Mohammed Goni Modu, the appellants, had attempted to halt the merger through a number of legal procedures. 

The Federal High Court was the first court to hear their challenge, which then moved on to the Court of Appeal and finally the Supreme Court. On Monday, the Court denied an appeal that sought to stop the transaction and awarded each respondent N10 million in costs against the appellants.

This ended the legal dispute that had impeded the process of combining the two lenders to create a new, powerful bank. The merger was previously approved by the two firms' shareholders during a court-mandated Extraordinary General Meeting (EGM) that took place in September of last year. 

The Central Bank of Nigeria (CBN) had previously approved as well. What the Court stated In Appeal No. SC/CV/132/2026, which resulted from Appeal No. CA/LAG/CV/137/2025 and Suit No. FHC/L/MISC/734/2025, a five-member panel of the Supreme Court, presided over by Justice Tijani Abubakar, rendered the ruling.

In addition to dismissing the appeal as unmeritorious, the Apex Court used its authority under Section 22 of the Supreme Court Act to directly sanction the merger dispute between Unity Bank Plc and Providus Bank Limited, thereby ending all litigation pertaining to the deal.

In compliance with the authorized Scheme of Merger, the court mandated that Unity Bank Plc's assets, liabilities, and undertakings—including real estate—be transferred to Providus Bank Limited.

Additionally, it mandated that the transfer be finished within ten days of the scheme's approval.

The top court authorized a price of N3.18 per share, or 18 Providus Bank shares worth 50 kobo apiece, for each 17 Unity Bank shares that owners held as part of the merger agreements.

Additionally, the court accepted the adoption of ProvidusUnity Bank Limited as the new name for the expanded organization and ordered the dissolution of Unity Bank Plc's board without winding up the organization.

Providus Bank Limited, Unity Bank Plc, PAC Capital Limited, Vetiva Advisory Services Limited, Lighthouse Capital Limited, Planet Capital Limited, the Federal Competition and Consumer Protection Commission, the Securities and Exchange Commission, the Corporate Affairs Commission, and the Central Bank of Nigeria are among the parties involved in the appeal.

Reacting to the judgment, senior counsel to Unity Bank Plc, Chief D.D. Dodo, SAN, alongside R.O. Atabo, SAN, described the ruling as a historic decision that has finally settled all disputes relating to the merger.

According to Dodo, the Supreme Court’s intervention has removed every legal obstacle standing in the way of the consolidation.

“What the Supreme Court has done by this judgment is to bring closure to the merger between Providus Bank and Unity Bank.

“Some persons went to the Federal High Court and attempted to truncate the merger, and the matter progressed through the Court of Appeal to the Supreme Court. Today, that chapter has been conclusively closed,” he said.

The senior advocate noted that the judgment is particularly significant because of the apex court’s decision to invoke Section 22 of the Supreme Court Act, a power rarely exercised in such circumstances.

He argued that the judgment may represent the first instance in Nigeria’s judicial history in which the Supreme Court has directly sanctioned a merger involving banking institutions, rather than remitting the matter to a lower court for further proceedings.

When completed, the merged institution will debut with an extensive network of about 230 branches nationwide, immediately ranking it among the most expansive banks in Nigeria.

Providus Bank brings its track record in innovation, digital banking, and customer-centric services, while Unity Bank contributes wide geographic reach and decades of brand equity.

Combined, the lenders say they will be better positioned to support households, SMEs, corporates, and government institutions.

The merged entity will also launch with a strong capital adequacy ratio, a crucial metric for competitiveness under Nigeria’s evolving banking reform