The Supreme Court has dismissed an appeal seeking to halt the merger between Providus Bank Limited and Unity Bank Plc, effectively removing the final legal hurdle to the consolidation of the two lender.
- +Supreme Court clears Providus-Unity Bank merger, ends legal challenge
In a unanimous judgment delivered on Monday by a five-member panel led by Justice Tijani Abubakar, the apex court held that the appeal lacked merit and awarded costs of N10 million against each of the appellants in favour of the respondents.
In a unanimous judgment delivered on Monday by a five-member panel led by Justice Tijani Abubakar, the apex court held that the appeal lacked merit and awarded costs of N10 million against each of the appellants in favour of the respondents.
The appellants, Suleiman Abubakar and Mohammed Goni Modu, who are customers and shareholders of the banks, had challenged an earlier decision of the Court of Appeal that dismissed their bid to stop the merger.
Following the dismissal of the appeal, the Supreme Court invoked its powers under Section 22 of the Supreme Court Act to directly sanction the merger scheme, bringing an end to all litigation surrounding the transaction.
The court also 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 arrangement. The transfer is to be completed within 10 days.
As part of the approved scheme, Unity Bank shareholders will receive either N3.18 per share or 18 Providus Bank shares of 50 kobo each for every 17 Unity Bank shares held.
The apex court further approved the dissolution of Unity Bank’s board without winding up the institution and sanctioned the adoption of a new corporate identity, Providus-Unity Bank Limited, for the combined entity.
The merger forms part of efforts by Nigerian banks to meet the recapitalisation requirements introduced by the Central Bank of Nigeria (CBN). In July 2025, Providus Bank and Unity Bank approached the Federal High Court to seek approval for shareholder and director meetings to consider a merger scheme.
Following the court order, shareholders of both banks approved the transaction, which was subsequently sanctioned by the Federal High Court.
Despite not being parties to the merger proceedings, the appellants later sought to challenge the transaction, arguing for its dissolution. While they were granted leave to join the matter as interested parties, both the Court of Appeal and the Supreme Court ultimately rejected their claims.
The judgment in Appeal No. SC/CV/132/2026 arose from earlier proceedings at the Court of Appeal and the Federal High Court and is expected to provide regulatory certainty for the enlarged banking group.
Reacting to the ruling, Damian Dodo, SAN, counsel to Unity Bank, described the judgment as a landmark decision that conclusively resolved all disputes relating to the merger.
“The Supreme Court has brought closure to the merger between Providus Bank and Unity Bank. Attempts to frustrate the transaction have now been finally resolved, and all legal obstacles to the consolidation have been removed,” Dodo said.
Industry observers say the verdict reinforces regulatory efforts to strengthen the banking sector through consolidation as lenders position themselves to meet higher capital requirements and compete more effectively in Nigeria’s evolving financial landscape.
