The Supreme Court of Nigeria has put a final seal on the long-running legal dispute surrounding the proposed consolidation between Providus Bank Limited and Unity Bank Plc, clearing the way for full implementation of the transaction.
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The Supreme Court approved full transfer of Unity Bank’s assets, liabilities, and undertakings to Providus Bank within 10 days
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A share swap valuation of N3.18 per Unity Bank share was upheld, alongside board dissolution without liquidation
In a decisive ruling delivered by a five-member panel led by Justice Tijani Abubakar on Monday, June 1, the apex court dismissed the appeal challenging the arrangement, describing it as lacking merit and invoking Section 22 of the Supreme Court Act to grant final approval.
The judgment effectively confirms the merger of 2 Nigerian banks, ending months of uncertainty and setting the stage for immediate regulatory and operational integration.
Delivering the judgment in Appeal No. SC/CV/132/2026, the court ruled that all assets, real property, and business undertakings of Unity Bank Plc must be transferred to Providus Bank Limited in line with the approved merger scheme.
The justices also endorsed the restructuring formula, which sets compensation at N3.18 per share or an exchange of 18 Providus Bank shares for every 17 Unity Bank shares held by investors.
The panel further ordered the dissolution of Unity Bank’s board of directors, while clarifying that the institution will not undergo full winding-up proceedings. Instead, it will be absorbed into the enlarged entity to be known as ProvidusUnity Bank Plc, marking a significant transformation in Nigeria’s banking landscape.
The court also imposed a cost of N10 million against the appellants in favour of each respondent, underscoring its position that the challenge to the transaction was without legal foundation.
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Reacting to the ruling, Senior Advocate of Nigeria, D.D. Dodo, counsel to Unity Bank, described the outcome as “historic,” noting that it removes the final legal barrier to the consolidation. He added that the decision serves broader public interest by strengthening confidence in the financial sector.
The dispute had been initiated by a group of shareholders and customers who sought to halt the transaction, joining regulatory bodies such as the Central Bank of Nigeria, Securities and Exchange Commission, Corporate Affairs Commission, and the Federal Competition and Competition Protection Commission as respondents.
With the judgment now delivered, regulators and stakeholders are expected to fast-track the operational integration process, bringing closure to one of the most closely watched banking consolidation cases in recent years.
