Recent media reports have suggested that Unity Bank may not have met the Central Bank of Nigeria’s (CBN) recapitalisation requirement. A closer look at the ongoing merger process between Unity Bank and Providus Bank provides important context.

The CBN previously endorsed the proposed merger as part of the banks’ strategy to meet the recapitalisation threshold. This approval included a key financial accommodation specifically designed to facilitate the transaction. Following the merger arrangements, the financial accommodation has now been converted to Tier-1 capital, boosting the combined capital base of Unity Bank and Providus Bank to well above the ₦200 billion minimum required to maintain a national banking licence under the CBN’s framework.

The merger is currently in its final stages. Approvals have already been obtained from both the CBN and the shareholders of the two banks. Additional regulatory clearances have also been secured from the Securities and Exchange Commission (SEC) and other relevant authorities. Integration activities between the two institutions are already underway, with the final court sanction expected in the coming days. This will ensure completion ahead of the CBN’s March 31 deadline for the recapitalisation exercise.

In light of the sensitivity and significance of this transaction, stakeholders are encouraged to rely on verified information. The banks’ management teams remain available to provide further clarification or additional details as needed.