The Supreme Court on Monday, brought a definitive end to the legal dispute surrounding the merger of Providus Bank Limited and Unity Bank Plc, dismissing an appeal seeking to halt the transaction and imposing costs of N10 million against the appellants in favour of each respondent.
The apex court, in a judgment delivered by Justice Tijani Abubakar in Appeal Numbered, SC/CV/132/2026, upheld the merger and exercised its powers under Section 22 of the Supreme Court Act to directly sanction the transaction, effectively concluding all litigation relating to the consolidation.
The appeal arose from proceedings in Appeal No. CA/LAG/CV/137/2025 and Suit No. FHC/L/MISC/734/2025.
In its ruling, the Supreme Court ordered the transfer of all assets, liabilities and undertakings of Unity Bank Plc, including its real properties, to Providus Bank Limited in line with the approved Scheme of Merger.
The court directed that the transfer process be completed within 10 days and also approved the merger consideration for shareholders, stipulating payment of N3.18 per share or the allotment of 18 Providus Bank shares of 50 kobo each for every 17 Unity Bank shares held.
As part of the consolidation arrangement, the apex court dissolved the board of Unity Bank Plc without winding up the institution and approved the adoption of the new corporate name, ProvidusUnity Bank Limited, for the merged entity.
The appeal was filed by Suleiman Abubakar and Mohammed Goni Modu, customers and shareholders of the affected banks, who had sought through a series of legal actions to stop the merger. Their challenge began at the Federal High Court, proceeded to the Court of Appeal and ultimately reached the Supreme Court.
Delivering the court’s decision, the panel held that the appeal lacked merit and dismissed it in its entirety, while awarding N10 million in costs against the appellants in favour of each respondent.
Reacting to the judgment, lead counsel to Unity Bank Plc, Chief Damian Dodo, SAN, alongside R.O. Atabo, SAN, described the ruling as a landmark decision that finally settles all disputes relating to the merger.
According to Dodo, the Supreme Court’s intervention removed every remaining legal obstacle to the consolidation.
“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,” he said.
The senior advocate noted that the judgment was particularly significant because of the court’s decision to invoke Section 22 of the Supreme Court Act, a power he said is rarely exercised in such circumstances.
Dodo argued that the ruling could represent the first instance in Nigeria’s judicial history in which the Supreme Court directly sanctioned a merger involving banking institutions rather than remitting the matter to a lower court for further proceedings.
He further stated that the court recognised the broader economic and public-interest implications of the transaction, including its role in strengthening financial stability, protecting depositors’ funds and ensuring uninterrupted 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.
Dodo described the recapitalisation initiative as a forward-looking reform designed to create stronger and more resilient banks capable of safeguarding customer deposits and supporting economic growth.
He also commended CBN Governor, Olayemi Cardoso for driving the reform agenda, noting that the policy has attracted positive attention from international financial institutions.
“The Supreme Court has now brought its full authority to bear on the matter and has finally brought it to a conclusion,” he added.
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.
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