Providus Unity Bank merger moves forward after the Supreme Court dismissed objections and approved the banking consolidation

The Supreme Court of Nigeria has sanctioned the merger of Unity Bank Plc and Providus Bank Limited, dismissing an appeal that sought to halt the transaction and paving the way for the completion of one of the largest consolidations in Nigeria’s banking sector.

Also read: Providus, Unity Banks set for historic merger soon

In a judgment delivered on Monday by a five-member panel led by Justice Tijani Abubakar, the apex court dismissed the appeal as unmeritorious and awarded costs of N10 million against the appellants in favour of each respondent.

The ruling effectively ends a prolonged legal dispute that had delayed the consolidation process despite approvals previously secured from shareholders and regulators.

The case, filed as Appeal No. SC/CV/132/2026, arose from earlier proceedings at the Court of Appeal and the Federal High Court, where attempts had been made to stop the transaction.

In a significant move, the Supreme Court invoked Section 22 of the Supreme Court Act to directly sanction the Providus Unity Bank Merger, bringing all related litigation to a close.

The court ordered the transfer of all assets, liabilities, undertakings and real properties of Unity Bank Plc to Providus Bank Limited in line with the approved merger scheme.

It directed that the transfer process be completed within 10 days.

As part of the approved arrangement, shareholders of Unity Bank will receive either N3.18 per share or 18 shares of 50 kobo each in Providus Bank for every 17 Unity Bank shares held.

The apex court also approved the dissolution of Unity Bank’s board without winding up the institution and authorised the adoption of the new corporate name, ProvidusUnity Bank Limited, for the enlarged entity.

The appellants, Suleiman Abubakar and Mohammed Goni Modu, who are customers and shareholders of the affected banks, had challenged the merger through a series of legal actions that progressed from the Federal High Court to the Court of Appeal and ultimately the Supreme Court.

Other respondents in the case included Corporate Affairs Commission, Federal Competition and Consumer Protection Commission, Securities and Exchange Commission and Central Bank of Nigeria.

Reacting to the judgment, senior counsel to Unity Bank, Chief D.D. Dodo (SAN), described the decision as historic, saying it had removed all remaining legal obstacles to the merger.

According to him, the Supreme Court’s intervention conclusively settled every dispute surrounding the transaction.

Dodo noted that the ruling was particularly remarkable because of the court’s decision to invoke Section 22 of the Supreme Court Act rather than return the matter to a lower court for further proceedings.

He argued that the judgment may represent the first time in Nigeria’s judicial history that the Supreme Court has directly sanctioned a banking-sector merger.

Shareholders of both banks had approved the merger during court-ordered Extraordinary General Meetings held in September 2025, while regulatory approval had already been granted by the Central Bank of Nigeria.

Once completed, the Providus Unity Bank Merger will create a financial institution with approximately 230 branches nationwide, placing it among Nigeria’s largest banking networks.

The merged entity is expected to combine Providus Bank’s strengths in digital banking and innovation with Unity Bank’s extensive geographic footprint and longstanding market presence.

Also read: Unity Bank launches upgraded Unifi mobile app

Industry observers say the enlarged institution will also launch with a stronger capital adequacy position, enhancing its competitiveness as Nigeria’s banking sector adjusts to evolving regulatory and recapitalisation requirements.