Apex Court dismisses appeal, imposes ₦10m costs, dissolves Unity Bank board, and orders full transfer of assets within 10 days.
The Supreme Court on Monday delivered a landmark judgment that brought a definitive end to the legal challenge against the merger of Providus Bank Limited and Unity Bank Plc.
A five‑member panel led by Justice Tijani Abubakar dismissed the appeal filed by Suleiman Abubakar and Mohammed Goni Modu, awarding costs of ₦10 million in favour of each respondent. The appellants, both customers and shareholders, had sought to halt the transaction through successive court actions from the Federal High Court to the Court of Appeal, before reaching the apex court.
Invoking its rarely used powers under Section 22 of the Supreme Court Act, the court directly sanctioned the merger, ordering the transfer of all assets, liabilities, and undertakings of Unity Bank Plc to Providus Bank Limited in line with the approved Scheme of Merger. The transfer must be completed within 10 days.
As part of the arrangement, shareholders will receive ₦3.18 per share or 18 Providus Bank shares of 50 kobo each for every 17 Unity Bank shares held. The court also dissolved the Unity Bank board, approved the adoption of the new name ProvidusUnity Bank Limited, and confirmed that the institution will continue without winding up.
Senior counsel to Unity Bank Plc, Chief D.D. Dodo, SAN, hailed the ruling as historic, noting that it may be the first time in Nigeria’s judicial history that the Supreme Court has directly sanctioned a banking merger. He stressed that the judgment removes all legal obstacles, strengthens financial stability, protects depositors’ funds, and ensures uninterrupted banking services.
The merger forms part of the Central Bank of Nigeria’s recapitalisation programme under Governor Olayemi Cardoso, aimed at building stronger, more resilient banks through consolidation. Dodo commended the CBN’s forward‑looking policy, which has attracted international attention and reinforced confidence in Nigeria’s financial system.
Respondents in the appeal included 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.
