Abuja (Nigeria): Customers of Providus Bank Limited and Unity Bank Plc have appealed to the institutions to ensure improved and seamless service delivery in their proposed merger plans.
Some of the customers who spoke to journalists in Abuja on Sunday urged the banks to adopt a customer-centric approach and improve digital banking solutions in their merger plans.
Unity Bank had secured shareholders’ approval to merge on Sept. 26 at a court-ordered Extraordinary General Meeting (EGM), where the boards and shareholders of both banks gave their consent.
Mr Mansur Abba, a Unity Bank customer, commended the merger, saying it was long overdue.
Abba alleged that the Bank had been operating below his expectations for a long while, hence the need for the merger.
” Although I withdrew some of my savings and deposited them in another account, I still maintained the Bank because I like them.
” This merger should help them improve their services and make customers happy,” he said.
Mrs Betty Ononye, another Unity Bank customer, appealed to the Bank to decentralise its branches and Automated Teller Machines (ATMs) for easy access by customers.
She expressed optimism that the decision would enable the banks to be more digitally positioned to serve customers effectively.
Ononye suggested that the transition should not be like that of Intercontinental and Oceanic Banks, which led to a loss of share dividends for shareholders.
” I just heard about the merger, but I believe it will help my Bank to stand firm.
” Many times when I visit my Bank’s ATM point, it is either not working or not dispensing cash.
” The banks must expand their branches and ATM points to enable customers to have access to banking services in record time,” she said.
Mr Adewale Akintola, a customer of Providus Bank, advised the banks to prioritise customer satisfaction as a strategy to attract other customers to the Bank.
He urged the Bank also to extend its Corporate Social Responsibility (CSR) efforts to support Small and Medium Enterprises (SMEs) and businesses.
According to a statement issued by Unity Bank, 293 shareholders, representing 99.32% of the total shareholding (with a value of N4.4 billion), voted in favour of the resolutions.
In comparison, two shareholders, representing 0.68 per cent, voted against.
The shareholders of Unity Bank were given the option of being paid N3.18 for every share held in the Bank in accordance with the terms stipulated in the Scheme, or be allotted 18 ordinary shares of N0.50 each in Providus Bank Limited in exchange for every 17 ordinary shares of the Bank at N0.50 each.
Speaking on the development, the Chairman of Unity Bank Plc, Hafiz Bashir, had said, “This approval by our shareholders is a decisive 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.”
Bashir said that the new name of the enlarged entity shall be Providus-Unity Bank (PUB) to reflect the core loyalty present in the vast northern market.
The Central Bank of Nigeria (CBN), in August 2024, approved financial accommodation for the proposed Unity Bank and Providus Bank merger.
The Acting Director, Corporate Communications of CBN, Hakama Sadi-Ali, said,” This strategic move is designed to bolster the stability of Nigeria’s financial system and avert potential systemic risks.
” The merger is contingent upon the financial support from the CBN. The fund will be instrumental in addressing Unity Bank’s total obligations to CBN and other stakeholders.
“It is unequivocal to state that the CBN’s action is in accordance with the provisions of Section 42 (2) of the CBN Act, 2007.
“This arrangement is crucial for the financial health and operational stability of the post-merger organisation,” she said.
