Supreme Court Sanctions Unity–Providus Merger, Dismisses Appeal Against Banking Consolidation
The Supreme Court has sanctioned the merger of Unity Bank and Providus Bank, paving the way for the conclusion of one of the biggest consolidations in the Nigerian banking industry.
The Court on Monday dismissed an appeal seeking to halt the transaction and awarding costs of N10 million against the appellants in favour of each respondent.
This put an end to the legal battle that has stalled the process aimed at building a new formidable bank through the combination of the two lenders.
Shareholders of the two companies had earlier approved the merger after a court-ordered Extraordinary General Meeting (EGM) held in September last year. Before that, the Central Bank of Nigeria (CBN) had also given its approval.
The judgment was delivered by a five-member panel of the apex court led by Justice Tijani Abubakar in Appeal No. SC/CV/132/2026, arising from Appeal No. CA/LAG/CV/137/2025 and Suit No. FHC/L/MISC/734/2025.
The Apex Court, in its judgment, not only dismissed the appeal as unmeritorious but also invoked its powers under Section 22 of the Supreme Court Act to directly sanction the merger between Providus Bank Limited and Unity Bank Plc, effectively bringing closure to all litigation surrounding the transaction.
The court ordered the transfer of all assets, liabilities and undertakings, including real properties, of Unity Bank Plc to Providus Bank Limited in accordance with the approved Scheme of Merger.
It further directed that the transfer be completed within 10 days of the scheme’s sanction.
As part of the merger arrangements, the apex court approved a consideration of N3.18 per share or 18 Providus Bank shares of 50 kobo each for every 17 Unity Bank shares held by shareholders.
The court also ordered the dissolution of the board of Unity Bank Plc without winding up the institution and approved the adoption of the new 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 sought through a series of court actions to stop the merger.
Their challenge commenced at the Federal High Court, proceeded to the Court of Appeal and eventually reached the Supreme Court.
The respondents in the appeal include Providus Bank Limited, Unity Bank Plc, PAC Capital Limited, Vetiva Advisory Services Limited, Lighthouse Capital Limited, Planet Capital Limited, the Corporate Affairs Commission, the Federal Competition and Consumer Protection Commission, the Securities and Exchange Commission and the Central Bank of Nigeria.
Reacting to the judgment, senior counsel to Unity Bank Plc, Chief D.D. Dodo, SAN, alongside R.O. Atabo, SAN, described the ruling as a historic decision that has finally settled all disputes relating to the merger.
According to Dodo, the Supreme Court’s intervention has removed every legal obstacle standing in the way of the consolidation.
“What the Supreme Court has done by this judgment is to bring closure to the merger between Providus Bank and Unity Bank.
“Some persons went to the Federal High Court and attempted to truncate the merger, and the matter progressed through the Court of Appeal to the Supreme Court. Today, that chapter has been conclusively closed,” he said.
The senior advocate noted that the judgment is particularly significant because of the apex court’s decision to invoke Section 22 of the Supreme Court Act, a power rarely exercised in such circumstances.
He argued that the judgment may represent the first instance in Nigeria’s judicial history in which the Supreme Court has directly sanctioned a merger involving banking institutions, rather than remitting the matter to a lower court for further proceedings.
