Supreme Court Gives Final Approval to Providus–Unity Bank Merger, Clears New Corporate Identity

The Supreme Court of Nigeria has approved the merger between Providus Bank Limited and Unity Bank Plc, bringing an end to a prolonged legal dispute that sought to halt the transaction.

In a unanimous decision delivered by a five-member panel led by Justice Tijani Abubakar, the apex court dismissed an appeal challenging the merger, describing it as lacking merit. The court also awarded costs of N10 million against the appellants in favour of each respondent.

Using its powers under Section 22 of the Supreme Court Act, the court granted final judicial approval for the merger and directed that all assets, liabilities, properties, and undertakings of Unity Bank Plc be transferred to Providus Bank Limited. It further ordered that all necessary procedures to complete the transaction be concluded within 10 days.

As part of the approved merger arrangement, Unity Bank shareholders will receive either N3.18 per share or 18 shares of Providus Bank, valued at 50 kobo each, for every 17 Unity Bank shares held.

The court also approved the dissolution of Unity Bank’s board of directors without winding up the institution. Following the merger, the enlarged entity will operate under the new name, ProvidusUnity Bank Plc.

The legal challenge had been initiated by two shareholders and customers of the banks, who sought to stop the merger through court action. The suit named several regulatory agencies, including the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), the Corporate Affairs Commission (CAC), and the Federal Competition and Consumer Protection Commission (FCCPC), alongside the two banks and their financial advisers.

Reacting to the judgment, senior counsel to Unity Bank, D.D. Dodo (SAN), described the ruling as a landmark decision that removes the final obstacle to the merger and strengthens confidence in Nigeria’s banking sector.

The ruling marks the completion of one of the country's most closely watched banking consolidation processes, paving the way for the newly merged institution to begin operations under its approved corporate structure.

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