Unity Bank, Providus merger surpasses N200bn capital threshold ahead of deadline

Unity Bank Plc has clarified that its ongoing merger with Providus Bank has pushed its capital base above the N200 billion minimum required by the Central Bank of Nigeria to retain a national banking licence.

The bank made the disclosure while dismissing reports suggesting it had yet to meet the apex bank’s recapitalisation requirements, stating that a CBN-approved financial accommodation tied to the merger has been converted into Tier-1 capital, thereby strengthening the combined balance sheet.

The development comes as Nigerian banks race to meet the March 31 recapitalisation deadline set by the CBN to enhance financial system resilience and support large-scale economic financing.

The merger has received regulatory approvals from the CBN, shareholders of both banks, and the Securities and Exchange Commission, with only final court sanction pending to complete the transaction.

Sources indicated that integration between both institutions is already underway, reflecting the advanced stage of the deal ahead of the regulatory deadline.

Analysts noted that the merger goes beyond compliance, positioning the combined entity as a stronger and more competitive institution capable of navigating Nigeria’s evolving economic landscape.

They added that the conversion of the financial accommodation into Tier-1 capital enhances both the quality and strength of the bank’s capital, potentially boosting lending capacity, risk absorption, and investor confidence.

The clarification, signed by Jonah Solomon, Head of External Communications at Unity Bank, stressed the importance of accurate reporting, particularly as the transaction nears completion.

The development reflects a broader trend of consolidation in Nigeria’s banking sector, as institutions adopt mergers and capital injections to meet regulatory demands.