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Unity Bank has officially cleared the air regarding its recapitalisation status, confirming that its strategic merger with Providus Bank has pushed the combined entity’s capital base well beyond the ₦200 billion threshold required for a national banking licence.
The clarification comes as the March 31, 2026, Central Bank of Nigeria (CBN) deadline approaches, amid media speculation regarding the bank’s compliance.
Financial Accommodation Converted to Tier-1 Capital
In a statement providing technical clarity on the transaction, a source at the Bank explained that a pivotal financial accommodation previously approved by the CBN has now been converted into Tier-1 capital.
This accounting move is the cornerstone of the merger’s success.
“The financial accommodation has been converted to Tier-1 capital, bringing the combined capital base of Unity Bank and Providus Bank well above the ₦200 billion minimum required to retain a national banking licence,” the spokesperson stated.
By exceeding the ₦200 billion floor, the new entity secures its standing in the national tier of the CBN’s revised three-tier banking framework.
Final Regulatory Hurdles and Integration
The merger, which received initial CBN and shareholder nods in 2024, has now secured additional clearances from the Securities and Exchange Commission (SEC). According to the bank, the transaction is currently awaiting a final court sanction, expected within the coming days.
“The merger process is currently in its final stages,” the spokesperson noted. “Integration activities between the two institutions are already underway, while the final court sanction is expected to conclude the process ahead of the March 31 deadline.”
Market Stability and Verified Information
The bank urged stakeholders and the media to rely on verified regulatory filings during this sensitive final window.
The transition signals a major consolidation in the Nigerian banking space, aimed at creating a more resilient institution capable of supporting larger systemic risks.
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