By Stephen Simon
Nigeria’s Supreme Court has brought a definitive end to all legal challenges against the merger of Providus Bank Limited and Unity Bank Plc, dismissing a shareholder appeal, sanctioning the transaction and awarding costs of N10 million against the appellants in favour of each respondent.
The landmark judgment was delivered by a five-member panel of the apex court led by Justice Tijani Abubakar in Appeal No. SC/CV/132/2026.
In what legal practitioners have described as a rare exercise of the court’s powers under Section 22 of the Supreme Court Act, the apex court directly sanctioned the merger rather than remitting the matter to a lower court, effectively removing every remaining legal obstacle to the consolidation.
The court ordered that all assets, liabilities and undertakings of Unity Bank Plc be transferred to Providus Bank Limited within 10 days of the sanction.
It also approved a merger consideration of N3.18 per share, or 18 Providus Bank shares of 50 kobo each for every 17 Unity Bank shares held by shareholders.
Following the approval, the merged entity will operate as ProvidusUnity Bank Limited, while the board of Unity Bank Plc is to be dissolved without the bank undergoing a winding-up process.
The appellants, Suleiman Abubakar and Mohammed Goni Modu, who are customers and shareholders of the affected banks, had approached the Federal High Court seeking to halt the merger process.
The dispute subsequently moved through the appellate courts before reaching the Supreme Court in Appeal No. SC/CV/132/2026, arising from Appeal No. CA/LAG/CV/137/2025 and Suit No. FHC/L/MISC/734/2025.
In its decision, the apex court dismissed the appeal in its entirety, holding that it lacked merit.
Reacting to the judgment, Chief D.D. Dodo, SAN, counsel to Unity Bank, described the ruling as a historic milestone that conclusively resolves all litigation surrounding the merger.
“What the Supreme Court has done by this judgment is to bring closure to the merger between Providus Bank and Unity Bank. Today, that chapter has been conclusively closed,” he said.
Dodo further argued that the decision could represent the first instance in which Nigeria’s Supreme Court directly sanctioned a banking merger, rather than returning the matter to a lower court for implementation.
According to him, the court appeared mindful of the broader implications of the transaction for depositor protection, financial system stability and confidence in the banking sector.
The merger forms part of the ongoing banking sector recapitalisation programme being driven by the Central Bank of Nigeria, which encourages financial institutions unable to independently meet revised capital requirements to pursue mergers, acquisitions and other strategic business combinations.
Dodo also commended Olayemi Cardoso for championing the reform initiative aimed at strengthening the resilience and competitiveness of Nigeria’s banking industry.
The respondents in the appeal include Providus Bank, Unity Bank, 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.
