Banking
Unity Bank Shareholders Authorise Merger With Providus Bank
By Dipo Olowookere
The proposed merger between Unity Bank Plc and Providus Bank Limited has seen a major headway as the shareholders of the former have approved the transaction.
The nod for both financial institutions to operate as an entity was given at a Court-Ordered Meeting held on Friday September 26, 2025, at the OOPL Hotel in Abeokuta, Ogun State.
At the event, which had the participation of 295 shareholders, the bank’s directors and solicitors/transaction advisers were given the mandate to seek the necessary court orders and take all required actions to give full effect to the scheme.
As part of the scheme consideration, Unity Bank shareholders will receive N3.18 per share or be allotted 18 ordinary shares of 50 Kobo each in Providus Bank Limited (credited as fully paid) for every 17 ordinary shares of Unity Bank held.
Upon completion, Unity Bank’s entire share capital will be cancelled, and the bank dissolved without winding up, while Providus Bank will retain its certificate of incorporation as the enlarged bank.
A look at the voting pattern showed that 293 shareholders, representing 99.32 per cent of total shareholding (N4.4 billion in value) voted in favour of the resolutions, while two shareholders, representing 0.68 per cent voted against.
The chairman of Unity Bank, Mr Hafiz Mohammed Bashir, informed shareholders that the new name of the enlarged entity would be Providus-Unity Bank (PUB) to reflect the core loyalty present in the vast northern market.
“This approval by our shareholders is a strong vote of confidence in the merger and what it represents for the future.
“By joining forces with Providus Bank, we are creating a stronger, more competitive, and more resilient institution that will deliver long-term value to our customers, shareholders, and the Nigerian economy,” he stated.
Mr Bashir clarified to shareholders that the Nigerian Exchange (NGX) Limited lifted the suspension of trading of Unity Bank shares on Thursday, September 15, 2025, with a remarkable crossing of 4.004 billion units of AMCON shares, representing 34 per cent of issued shares of Unity Bank, to an existing shareholder of Unity Bank and not to Providus Bank.
It is believed that the merger between the two lenders would pave the way for the emergence of a financial powerhouse anchored on strong market positioning with the capacity to take on the competition on the strength of both traditional and modern digital banking.
By Aduragbemi Omiyale
The merger between Unity Bank Plc and Providus Bank Limited has been sanctioned by the Supreme Court, giving way for the emergence of a new single entity, ProvidusUnity Bank Limited.
A five-member panel of the apex court led by Justice Tijani Abubakar on Monday ordered the transfer of all assets, liabilities and undertakings, including real properties, of Unity Bank to Providus Bank in accordance with the approved Scheme of Merger.
The merger between the two lenders was challenged by customers and shareholders of the affected banks, Mr Suleiman Abubakar and Mr Mohammed Goni Modu.
They earlier approached a Federal High Court to stop the transaction via Suit No. FHC/L/MISC/734/2025. The matter later went to an Appeal Court in No. CA/LAG/CV/137/2025, before settling at the apex court in No SC/CV/132/2026.
Delivering judgment yesterday, the Supreme Court held that the appeal lacked merit and accordingly dismissed it in its entirety, while imposing costs of N10 million in favour of each respondent.
While invoking its powers under Section 22 of the Supreme Court Act, the panel sanctioned the merger and directed that the completion of the transfer be made within 10 days of the sanction of the scheme.
As part of the merger arrangements, the apex court approved a consideration of N3.18 per share or 18 Providus Bank shares of 50 kobo each for every 17 Unity Bank shares held by shareholders.
The court also ordered the dissolution of the board of Unity Bank Plc without winding up the institution and approved the adoption of the new name, ProvidusUnity Bank Limited, for the enlarged entity.
The merger forms part of the banking sector recapitalisation programme introduced by the Central Bank of Nigeria (CBN), which encourages financial institutions unable to independently meet new capital thresholds to explore mergers, acquisitions and other strategic combinations.
By Adedapo Adesanya
Brass, a Nigerian business banking startup, will cease operating as an independent company and transfer its customers to Paystack Microfinance Bank (MFB) as part of a strategic transition.
In a statement on Monday, Brass said interested customers would be migrated into Paystack MFB before July 31, 2026, as the company integrates its business banking operations into Paystack’s regulated banking infrastructure.
“Brass will move its business banking into Paystack MFB. As part of this transition, Brass will no longer operate as an independent entity,” the company said in the statement.
In May 2024, a Paystack-led consortium acquired Brass for an undisclosed amount in a deal that saved the company, which was plagued by a liquidity crisis. Others in the consortium that rescued the firm include PiggyVest, Ventures Platform, and P1 Ventures.
Founded in 2020 by Mr Sola Akindolu and Mr Emmanuel Okeke, Brass built a digital banking platform for small businesses, offering business accounts, payroll tools, expense management, and cash-flow tracking.
Three years after it was established, it faced a crisis that saw it struggle to process customer withdrawals, prompting complaints from several entities who could not access their company funds and raising concerns about trust in digital financial services.
The new ownership saw an overhaul as well as some changes, which included co-founders Mr Akindolu and Mr Okeke exiting the business.
In the announcement, Brass said the months following the acquisition were spent rebuilding internal systems and operational processes under a new leadership team led by Mr Philip Obosi and Mr Yvonne Obike.
“As we rebuilt and as our platform became more mature, something became increasingly clear,” the company said. “The next phase of our growth could not be achieved alone.”
“This transition marks a new chapter, with even greater capability for the businesses we serve. And this is only the beginning,” the statement added.
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has extended the deadline for enforcement of its mandatory Point of Sale (PoS) terminal geo-fencing framework to August 1, giving payment service providers an extended compliance window.
The postponement was disclosed in a circular signed by the CBN Director of the Payments System Supervision Department, Ms Rakiya Yusur.
In August 2025, the CBN directed that all PoS terminals in the country be geo-tagged within 60 days as part of measures to curb fraud and strengthen oversight of digital payments under ISO 20022 standards.
The directive requires all players in Nigeria’s payments ecosystem, including Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Mobile Money Operators (MMOs), Super Agents, and switching companies, to adopt the ISO 20022 messaging standard and geo-tag all payment terminals.
The new extension shifted the enforcement date to August 1, giving operators additional time to complete technical and operational requirements.
The apex bank also increased the permissible geo-fence radius for PoS terminals from 10 metres to 70 metres.
Additionally, the CBN postponed the enforcement date for compliance with the geo-fencing requirement as part of adjustments to the framework.
“Further to the Circular with reference number PSS/DIR/PUB/CIR/001/001 dated August 25, 2025, on migration to ISO 20022 standards for payments messaging, mandatory geotagging of payment terminals, and various stakeholders’ engagement on the subject to address the operationalisation of the Circular, the Central Bank of Nigeria has considered and approved the following:
“Geo-fence radius is hereby increased from 10 metres to 70 metres. Enforcement of PoS Terminal Geo-fence is extended to August 1, 2026,” the central bank stated.
Geo-fencing requires PoS terminals to operate only within approved geographic locations linked to registered merchants and agents.
The policy aims to strengthen transaction monitoring, curb abuse of payment channels, and improve the integrity of Nigeria’s payment system.
The central bank also ordered all affected institutions to submit evidence of compliance to the CBN’s Payments System Supervision Department no later than 31 July.
The CBN added that financial institutions are required to resolve all operational issues with the National Central Switch within the stipulated timeline to ease compliance.
“Evidence of compliance with the above should be addressed to the Director, Payments System Supervision Department via pa*********@*****ov.ng not later than 31 July, 2026.
“Financial institutions are required to resolve all operational issues with the National Central Switch within the stipulated timeline to ease compliance,” the CBN stated.
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