Unity Bank Clarifies Recapitalisation Status, Says Merger With Providus Bank Near Completion

Unity Bank clarified that recent media reports suggesting that the bank had not met the recapitalisation requirement of the Central Bank of Nigeria were inaccurate. The bank explained that the apex bank had earlier supported the proposed merger between Unity Bank and Providus Bank as part of efforts to meet the required capital threshold.

The bank stated that the approval granted by the regulator included a key financial accommodation meant to support the merger transaction. According to the clarification, the financial accommodation had already been converted into Tier-1 capital, raising the combined capital base of the two banks above the ₦200 billion minimum required to retain a national banking licence under the CBN recapitalisation framework.

Unity Bank further noted that the merger process had reached its final stage after receiving approvals from the Central Bank and shareholders of both institutions. It added that additional regulatory clearances had also been obtained from the Securities and Exchange Commission and other relevant authorities.

The bank explained that integration activities between the two institutions were already ongoing, while the final court sanction was expected in the coming days, ahead of the March 31 deadline set by the Central Bank of Nigeria for the completion of the recapitalisation exercise.

The bank urged the media and the public to rely on verified information, noting that the clarification was provided to give background information on the transaction due to its sensitive stage, and not for publication.