Unity Bank Exceeds ₦200 Billion Capital Threshold as Merger With Providus Nears Completion

Unity Bank Plc has moved above the Central Bank of Nigeria’s minimum capital requirement for a national banking licence following regulatory-backed financial support tied to its proposed merger with Providus Bank.

The development comes amid recent reports suggesting that Unity Bank had yet to meet the Central Bank of Nigeria’s recapitalisation threshold. However, findings indicate that the bank’s capital position has been strengthened through a structured financial accommodation approved by the regulator as part of the merger framework.

According to details obtained, the Central Bank of Nigeria approved the merger between Unity Bank and Providus Bank as a strategic pathway to meet the new capital requirement.

As part of this process, a financial accommodation provided to support the transaction has now been converted into Tier-1 capital, significantly boosting the combined capital base of both institutions.

With this conversion, the merged entity’s capital is understood to be well above the ₦200 billion minimum required to retain a national banking licence under the apex bank’s recapitalisation framework.

The merger process has advanced considerably, having secured approvals from the Central Bank of Nigeria and shareholders of both banks.

Additional regulatory clearances have also been obtained from the Securities and Exchange Commission and other relevant authorities, while integration activities between the two institutions are already underway.

The final stage of the transaction is expected to be concluded upon receipt of court sanction, which will formally complete the merger process. Industry sources indicate that this is likely to be finalised in the coming days, ahead of the regulatory deadline set by the Central Bank.

The recapitalisation exercise, introduced by the Central Bank of Nigeria, requires banks with national licences to maintain a minimum capital base of ₦200 billion as part of broader efforts to strengthen the resilience of the Nigerian banking sector and enhance its capacity to support economic growth.

Market analysts note that the successful completion of the merger with Providus Bank could position the combined entity for improved operational scale, enhanced balance sheet strength and greater competitiveness within Nigeria’s banking landscape.

However, analysts also emphasise that full compliance remains subject to the completion of all legal and regulatory processes, including the final court approval. Until then, the recapitalisation status should be viewed within the context of an ongoing transaction.