CBN Recap Fallout: Unity Bank Directors Eye N37bn in Providus Merger Payout

The Nigerian banking landscape is witnessing another major shake-up as ProvidusBank is set to assume the corporate identity of Unity Bank Plc. This follows the approval of a merger scheme by Unity Bank’s shareholders, marking a decisive step toward consolidation in the sector.

Under the terms of the deal, Unity Bank shareholders were given two options: receive N3.18 per share in cash or opt for 18 ProvidusBank shares in exchange for every Unity Bank share held. However, what has raised eyebrows is the financial windfall for a handful of Unity Bank directors.

Reports indicate that five directors with direct and indirect stakes in Unity Bank will collectively pocket about 67 percent of the N37.14 billion payout—approximately N25 billion—leaving other shareholders with a smaller share of the merger’s financial benefits.

Industry watchers note that the development is consistent with Nigeria’s ongoing banking reforms, but it also raises questions about corporate governance, transparency, and how benefits of such deals are distributed.

The Central Bank of Nigeria (CBN) had earlier provided a N700 billion bailout to stabilize Unity Bank ahead of this merger, underscoring the systemic importance of the transaction. With the transition, ProvidusBank will not only inherit Unity Bank’s corporate identity but also its nationwide presence, potentially positioning it as a stronger competitor in the Nigerian financial services sector.

Analysts suggest that this deal could trigger fresh competition in retail and SME banking, areas where Unity Bank has historically maintained a strong footprint, while ProvidusBank brings stronger digital infrastructure and high-net-worth client services to the table.

The move, announced just a day before the Providus–Unity Bank merger story broke, highlights the increasing interest of international investors in Nigeria despite the country’s macroeconomic challenges.