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Supreme Court finalizes Providus, Unity banks’ merger
🇳🇬 Nigeria /Crime & Justice

Supreme Court finalizes Providus, Unity banks’ merger

From Premium Times · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Outcome reported
  • The Supreme Court has finalized the merger of Providus Bank and Unity Bank by dismissing a legal challenge.
  • The court ordered the transfer of all Unity Bank assets and liabilities to Providus Bank within 10 days, setting share considerations for Unity Bank shareholders.
  • This ruling clears the path for the newly named ProvidusUnity Bank Limited to proceed, following earlier approvals from the Central Bank of Nigeria and shareholders.

Nigeria's Supreme Court has definitively approved the merger between Providus Bank and Unity Bank, dismissing a legal challenge and clearing the path for the creation of ProvidusUnity Bank Limited. The apex court's five-member panel unanimously rejected an appeal seeking to overturn a lower court's decision, ordering the appellants to pay N10 million in costs to each respondent.

the appeal lacked merit

— Tijani AbubakarDelivering the judgement, the Supreme Court panel held that the appeal was without merit and dismissed it.

In its judgment, delivered by Justice Tijani Abubakar, the Supreme Court invoked Section 22 of the Supreme Court Act to directly sanction the merger. This move effectively removes any further legal obstacles. The court mandated that all assets, liabilities, and undertakings of Unity Bank, including its real property, must be transferred to Providus Bank within 10 days. It also approved the share consideration for Unity Bank shareholders, establishing a ratio of N3.18 per share or 18 Providus Bank shares for every 17 Unity Bank shares held.

The court further ordered the dissolution of Unity Bank's board without winding up the company and approved the adoption of the name ProvidusUnity Bank Limited for the enlarged entity. The legal challenge was initiated by Suleiman Abubakar and Mohammed Modu, customers and shareholders of the banks, who had pursued their case through the Federal High Court and the Court of Appeal before reaching the Supreme Court.

all assets, liabilities and undertakings of Unity Bank, including its real property, be transferred to Providus Bank under the approved scheme of merger.

— Supreme CourtThe court ordered that all assets, liabilities and undertakings of Unity Bank, including its real property, be transferred to Providus Bank under the approved scheme of merger.

The merger process, initially approved by the Central Bank of Nigeria (CBN) in August 2024, aimed to strengthen the financial system and reduce systemic risk. The CBN provided financial support to Unity Bank to meet its obligations and ensure the stability of the post-merger institution, aligning with Section 42(2) of the CBN Act, 2007. The regulator granted final consent in August 2025 amidst intensifying banking reforms, including new minimum capital requirements pushing lenders toward consolidation. Shareholders approved the deal in September 2025.

the intervention, backed by financial support arrangements, was aimed at strengthening the financial system and reducing systemic risk.

— Central Bank of NigeriaThe CBN said at the time that the intervention, backed by financial support arrangements, was aimed at strengthening the financial system and reducing systemic risk.
DistantNews Editorial

Originally published by Premium Times in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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