The Digest:
Unity Bank Plc has confirmed that its merger with Providus Bank Limited remains "firmly on track" following approvals from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC). In a statement on Wednesday, the bank addressed speculation that the merger had stalled due to insider credits, stressing that all regulatory approvals have been secured with "remaining steps largely procedural." The combined entity will have a capital base exceeding N200 billion, meeting the minimum requirement for a national banking licence under the CBN's recapitalisation framework. Integration activities are underway, with the final court sanction expected to conclude the process. Unity Bank CEO Ebenezer Kolawole described the merger as "a defining moment" that "significantly enhances our capital base, operational capacity, and strategic positioning."
Key Points:
- The merger positions the combined entity among 21 banks meeting CBN's new capital threshold.
- It strengthens the banking sector's resilience and mitigates systemic risks.
- Shareholders gain from the consolidation, while customers expect enhanced services.
- This signals a consolidation trend in Nigeria's banking sector amid the recapitalisation process.
- The timing, with regulatory approvals secured, moves the merger toward finalisation.
Sources: The Cable, Unity Bank Statement
