Unity Bank Plc has scheduled a Court-Ordered Meeting for Friday, September 26, 2025, at 9:00 a.m. in Abeokuta, where shareholders will determine the fate of a merger with ProvidusBank Limited.
This decisive meeting follows a Federal High Court order issued on July 17, 2025, by Hon. Justice D. I. Dipeolu under the Companies and Allied Matters Act (CAMA) 2020, establishing the legal framework for what could become one of Nigeria’s notable banking consolidations.
The proposed Scheme of Merger encompasses a comprehensive combination of all assets, liabilities, undertakings, real properties, and intellectual property rights between the two financial institutions.
Under this arrangement, ProvidusBank Limited will emerge as the surviving entity, while Unity Bank’s entire share capital faces cancellation, leading to the bank’s dissolution without the traditional winding-up process.
Unity Bank investors must choose between two distinct compensation alternatives that reflect different risk-reward profiles in the merger transaction. The cash option offers ₦3.18 per Unity Bank share, providing immediate liquidity for shareholders seeking to exit their investment entirely.
Alternatively, the share swap arrangement proposes exchanging 18 ordinary shares of ₦0.50 each in ProvidusBank for every 17 ordinary shares of ₦0.50 each held in Unity Bank, effectively giving shareholders continued participation in the enlarged banking institution.
The merger requires approval from a statutory majority comprising not less than three-quarters in value of ordinary shares held by members present and voting.
The Court’s authorization also permits Unity Bank’s directors to consent to modifications that regulatory bodies including the Securities and Exchange Commission (SEC) and Central Bank of Nigeria (CBN) may require.
Mr. Hafiz Mohammed Bashir, Chairman of the Board, will preside over the proceedings, with Mr. Ebenezer A. Kolawole, Managing Director, serving as alternate chair if needed.
Shareholders maintain the right to submit questions regarding the Scheme to the Company Secretary until 5:00 p.m. on Tuesday, September 23, 2025.
Voting eligibility will be determined by the member register as of Friday, September 19, 2025, after which registration closes specifically for this meeting.
This merger represents another step in Nigeria’s ongoing banking sector reforms, driven primarily by the Central Bank of Nigeria’s recapitalization requirements that mandate banks to strengthen their capital base.
The transaction enables both institutions to pool resources and meet regulatory capital thresholds more effectively than they could achieve independently, demonstrating how smaller banks are leveraging strategic mergers to comply with CBN directives.
