The Supreme Court of Nigeria has brought final closure to the long-running dispute over the merger between Providus Bank Limited and Unity Bank Plc, dismissing an appeal that sought to halt the transaction and formally endorsing the consolidation.
A five-member panel of the apex court, led by Justice Tijani Abubakar, ruled that the appeal lacked merit and ordered the appellants to pay costs of N10 million to each respondent.
Beyond rejecting the challenge, the court took the unusual step of invoking its powers under Section 22 of the Supreme Court Act to directly sanction the merger, effectively clearing all remaining legal obstacles to the deal.
The judgment also authorised the transfer of all assets, liabilities and undertakings of Unity Bank to Providus Bank in line with the approved merger scheme. The court directed that the process be completed within 10 days of the ruling.
As part of the arrangement, the court approved a share swap valuation of N3.18 per share, or 18 Providus Bank shares of 50 kobo each for every 17 Unity Bank shares held.
It further ordered the dissolution of Unity Bank’s board without winding up the institution and approved the name Providus-Unity Bank Limited for the merged entity.
The case, filed by shareholders challenging the merger, moved through the Federal High Court and Court of Appeal before reaching the Supreme Court, which has now ended all litigation surrounding the transaction.
The ruling is expected to fast-track the integration process, with the combined institution set to emerge as a stronger player in Nigeria’s banking sector under ongoing recapitalisation reforms.
