The Supreme Court has dismissed an appeal seeking to stop the merger of Providus Bank Limited and Unity Bank Plc, bringing to an end the legal challenge against the transaction.
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In a unanimous judgment delivered on Monday by a five-member panel led by Justice Tijani Abubakar, the apex court dismissed the appeal as unmeritorious and awarded costs of ₦10 million against the appellants in favour of each respondent.
The appeal, marked SC/CV/132/2026, arose from Appeal No. CA/LAG/CV/137/2025 and Suit No. FHC/L/MISC/734/2025.
The appellants, Suleiman Abubakar and Mohammed Goni Modu, who are customers and shareholders of the affected banks, had approached the courts in an attempt to halt the merger. Their challenge began at the Federal High Court, proceeded to the Court of Appeal and eventually reached the Supreme Court.
In its judgment, the Supreme Court not only dismissed the appeal but also invoked its powers under Section 22 of the Supreme Court Act to directly sanction the merger between Providus Bank and Unity Bank, thereby closing all litigation surrounding the transaction.
The court ordered the transfer of all assets, liabilities and undertakings of Unity Bank Plc, including real properties, to Providus Bank Limited in line with the approved Scheme of Merger.
It further directed that the transfer be completed within 10 days of the sanction of the scheme.
As part of the merger arrangement, the apex court approved a consideration of ₦3.18 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.
It also approved the adoption of the new name, ProvidusUnity Bank Limited, for the enlarged banking entity.
Reacting to the judgment, senior counsel to Unity Bank Plc, Chief D. D. Dodo, SAN, alongside R. O. Atabo, SAN, described the ruling as historic and said it had finally resolved all disputes relating to the merger.
“What the Supreme Court has done by this judgment is to bring closure to the merger between Providus Bank and Unity Bank.
“Some persons went to the Federal High Court and attempted to truncate the merger, and the matter progressed through the Court of Appeal to the Supreme Court. Today, that chapter has been conclusively closed,” Dodo said.
The senior advocate said the decision was significant because the Supreme Court invoked Section 22 of the Supreme Court Act instead of remitting the matter to a lower court for further proceedings.
According to him, the ruling may be the first time in Nigeria’s judicial history that the Supreme Court has directly sanctioned a merger involving banking institutions.
Dodo said the court recognised the wider economic and public-interest implications of the merger, particularly its importance to financial stability, protection of depositors’ funds and continuity of banking services.
“The Supreme Court realised that this merger is crucial to the national economy. It affects people’s lives, protects depositors’ funds and supports the policy of building stronger banks capable of sustaining commercial activities without disruption,” he said.
He added that the judgment strengthens confidence in ongoing regulatory efforts to consolidate and recapitalise the banking sector.
The merger is part of the banking sector recapitalisation programme introduced by the Central Bank of Nigeria, which encourages financial institutions unable to independently meet new capital thresholds to pursue mergers, acquisitions and other strategic combinations.
Dodo commended the CBN, under Governor Olayemi Cardoso, for driving the reform programme, saying the policy is aimed at creating stronger and more resilient banks capable of safeguarding customer deposits and supporting economic growth.
“The Supreme Court has now brought its full authority to bear on the matter and has finally brought it to a conclusion,” he added.
The respondents in the appeal include 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.
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