Supreme Court Approves Merger of Providus and Unity Banks

The Supreme Court on Monday threw out a case against the merger of Providus Bank Limited and Unity Bank Plc. This decision ends the legal battles over the joining of these two banks.

A five-member panel of the court unanimously agreed to dismiss the appeal that tried to challenge the Court of Appeal's earlier ruling.

Judge Tijani Abubakar delivered the judgement, stating that the appeal had no merit. The court ordered the appellants to pay N10 million each to the banks involved.

Besides dismissing the case, the Supreme Court also used Section 22 of the Supreme Court Act to directly approve the merger. This clears the way for the merger to happen without any more legal issues.

The court instructed that all assets, liabilities, and responsibilities of Unity Bank, including its properties, be transferred to Providus Bank. It said this process must be completed within 10 days.

The court also set the share price for Unity Bank shareholders at N3.18 per share. This means shareholders will get 18 shares of Providus Bank, each worth 50 kobo, for every 17 shares they hold in Unity Bank.

As part of the merger plan, the court ordered that Unity Bank’s board be dissolved, but the company will not be shut down. It also approved the new name ProvidusUnity Bank Limited for the merged bank.

The appellants, Suleiman Abubakar and Mohammed Modu, both customers and shareholders of the banks, had taken their case to the Supreme Court after losing in the Federal High Court and the Court of Appeal.

The Supreme Court panel said the appeal was without merit and dismissed it.

The merger process started in August 2024 when the Central Bank of Nigeria (CBN) gave the green light for Unity Bank and Providus Bank to combine. The CBN said this move was meant to strengthen the financial system and lower risks in banking.

The CBN explained that the merger was linked to financial support to help Unity Bank meet its obligations and ensure stability after the merger. This was in line with Section 42(2) of the CBN Act, 2007, and part of wider efforts to boost confidence in the banking sector during ongoing reforms.

In August 2025, the CBN gave final approval for the merger as banking reforms continued, including new minimum capital rules for banks. This policy encouraged banks to think about merging before the 2026 deadline.

Shareholders approved the deal at an extraordinary general meeting (EGM) in September 2025, following a Federal High Court order in July 2025. At the meeting, shareholders from both banks agreed to transfer assets, liabilities, and responsibilities, including properties and intellectual property.

The resolution also stated that Providus Bank’s certificate of incorporation would be used for the new enlarged bank after the merger.

Regulators and industry players have said this merger is part of larger efforts to boost Nigeria’s banking sector and make financial institutions more resilient.

After the ruling, Unity Bank's lawyer, Damien Dodo, who is a Senior Advocate of Nigeria (SAN), along with another SAN, Reuben Atabo, said the judgement has put an end to all arguments about the merger.

“What the Supreme Court has done by this judgement is to bring closure to the merger between Providus Bank and Unity Bank,” Mr Dodo said.

He pointed out that the court's use of Section 22 of the Supreme Court Act was important because it allowed the court to make final decisions on the merger.

According to him, the ruling shows how important the merger is to the financial system, especially in protecting depositors and making banks stronger.

“The Supreme Court realized that this merger is key to the national economy. It affects people’s lives, protects depositors’ money, and supports building stronger banks that can operate without issues,” he said.

He added that the judgement backs the CBN’s efforts to recapitalize and consolidate the banking sector.

“The Supreme Court has now fully addressed the matter and has brought it to a final conclusion,” he said.

The parties involved in the appeal include Providus Bank Limited, Unity Bank Plc, PAC Capital Limited, Vetiva Advisory Services Limited, Lighthouse Capital Limited, Planet Capital Limited, the Corporate Affairs Commission, the Federal Competition and Consumer Protection Commission (FCCPC), the Securities and Exchange Commission (SEC), and the CBN.