June 02, (THEWILL) — The Supreme Court has cleared the final legal hurdle to the merger between Unity Bank Plc and Providus Bank Limited, paving the way for the creation of a new banking institution with a nationwide footprint of about 230 branches and a stronger capital base.
In a landmark judgement delivered on Monday, the apex court dismissed an appeal seeking to halt the transaction and awarded costs of ₦10 million against the appellants in favour of each respondent. The ruling effectively brings to an end all litigation surrounding one of the most significant banking consolidations in recent years.
The judgement, delivered by a five-member panel led by Justice Tijani Abubakar in Appeal No. SC/CV/132/2026, upheld the merger scheme earlier approved by shareholders and regulators. The court further invoked its powers under Section 22 of the Supreme Court Act to directly sanction the merger, a move legal practitioners described as rare in corporate restructuring cases.
Under the approved scheme, all assets, liabilities, undertakings, and real properties of Unity Bank will be transferred to Providus Bank within 10 days. The court also approved a merger consideration of ₦3.18 per share, or 18 Providus Bank shares of 50 kobo each for every 17 Unity Bank shares held by shareholders.
In addition, the apex court ordered the dissolution of Unity Bank’s board without winding up the institution and approved the adoption of the new name, ProvidusUnity Bank Limited, for the enlarged entity.
The legal challenge was initiated by Suleiman Abubakar and Mohammed Goni Modu, who sought through a series of court actions to stop the merger. The matter moved from the Federal High Court to the Court of Appeal before reaching the Supreme Court.
Reacting to the judgement, senior counsel to Unity Bank, Chief D.D. Dodo (SAN), described the ruling as a historic decision that conclusively settles all disputes surrounding the transaction. He noted that the court’s decision to directly sanction the merger may represent a first in Nigeria’s banking sector.
The merger had already secured approvals from the Central Bank of Nigeria and shareholders of both institutions at court-ordered Extraordinary General Meetings held in September 2025.
Once completed, ProvidusUnity Bank will emerge as one of Nigeria’s largest banking networks, combining Providus Bank’s strengths in digital banking and innovation with Unity Bank’s extensive geographic reach. The enlarged institution is also expected to launch with a strong capital adequacy position, enhancing its ability to serve households, SMEs, corporates, and public-sector clients amid ongoing banking sector recapitalisation efforts.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
