By By Elizabeth Ugbo
The Supreme Court on Monday ended a prolonged legal dispute over the merger between Providus Bank Limited and Unity Bank Plc. The apex court, led by Justice Tijani Abubakar, delivered the judgment in Abuja, dismissed an appeal filed by two shareholders, sanctioned the merger under Section 22 of the Supreme Court Act, and cleared the way for the emergence of ProvidusUnity Bank Limited. The decision brings finality to all litigation surrounding the transaction and supports Nigeria’s banking recapitalisation programme.
Appeal Dismissed, Merger Fully Sanctioned
News Point Nigeria reports that the judgment was delivered by a five-member panel of the Supreme Court in Appeal No. SC/CV/132/2026.
The appeal arose from earlier proceedings at the Federal High Court and the Court of Appeal.
The appellants, Suleiman Abubakar and Mohammed Goni Modu, who are customers and shareholders of the affected banks, sought to stop the merger through a series of legal actions.
However, the Supreme Court found no merit in their appeal and dismissed it entirely.
The court also awarded N10 million costs against the appellants in favour of each respondent.
Court Orders Transfer of Assets and Liabilities
The Supreme Court directed the transfer of all assets, liabilities and undertakings of Unity Bank Plc to Providus Bank Limited.
The order covers all real properties and obligations of the bank.
In addition, the court directed the parties to complete the transfer process within 10 days of sanctioning the merger scheme.
Shareholders Receive Approved Merger Consideration
As part of the merger arrangement, the court approved a consideration of N3.18 per share.
Alternatively, shareholders will receive 18 Providus Bank shares of 50 kobo each for every 17 Unity Bank shares they hold.
Furthermore, the court approved the dissolution of Unity Bank’s board without winding up the institution.
The enlarged entity will operate under the new corporate identity, ProvidusUnity Bank Limited.
Senior Advocate Highlights Significance of Judgment
Senior Advocate of Nigeria, Kunle Dodo, described the judgment as a landmark ruling.
According to him, the Supreme Court rarely invokes Section 22 of the Supreme Court Act in matters of this nature.
He noted that the decision may represent the first time the apex court has directly sanctioned a banking merger instead of returning the matter to a lower court.
Dodo said the ruling reflects the court’s recognition of the merger’s economic and public-interest benefits.
“The Supreme Court realised that this merger is crucial to the national economy. It affects people’s lives, protects depositors’ funds and supports stronger banks,” he said.
Support for Banking Recapitalisation Programme
Dodo also stated that the judgment strengthens confidence in ongoing regulatory reforms within Nigeria’s banking sector.
The merger forms part of the recapitalisation programme introduced by the Central Bank of Nigeria (CBN).
The initiative encourages banks that cannot independently meet new capital requirements to pursue mergers, acquisitions or other strategic partnerships.
According to Dodo, the policy aims to create stronger and more resilient financial institutions.
He added that the reforms will better protect customer deposits and support economic growth.
Cardoso Commended for Banking Reforms
Dodo praised CBN Governor Olayemi Cardoso for driving the recapitalisation programme.
He noted that the reforms have attracted positive attention from international financial institutions.
He further stated that the Supreme Court’s decision has finally resolved all legal uncertainties surrounding the transaction.
“The Supreme Court has now brought its full authority to bear on the matter and has finally brought it to a conclusion,” he said.
Respondents in the Appeal
The respondents in the case 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.
New Chapter for ProvidusUnity Bank
With the judgment now delivered, the merger can proceed without further legal obstacles.
The ruling paves the way for the full implementation of the consolidation and the launch of ProvidusUnity Bank Limited as a stronger player in Nigeria’s banking industry.
