Unity Bank Fails To Meet Recapitalisation Deadline As Regulatory Processes Stall Merger Approval

Unity Bank’s merger deal with Providus Bank couldn’t scale through before the recapitalisation deadline of March 31st, 2026.

While the Central Bank of Nigeria(CBN) had earlier approved the consumation of both banks as single entity, series of regulatory approvals could not be secured as at the end of the deadline, it was learnt.

Both merging banks had earlier commenced the process of merging operations by retrenching some staff earlier, especially, those whose roles are duplicating...READ FULL; FROM THE SOURCE.

The development means Unity Bank was unable to obtain final approval under the apex bank’s two-year recapitalisation programme, which required banks to meet newly prescribed minimum capital thresholds.

According to details released at the close of the exercise, while 33 banks successfully met the revised capital requirements, a limited number of institutions including Unity Bank remained subject to ongoing regulatory processes.

The merger arrangement between Unity Bank and Providus Bank, it was learnt, “couldn’t scale through the CBN radar as at deadline owing to regulatory processes, effectively stalling Unity Bank’s recapitalisation pathway.

The recapitalisation programme, initiated in March 2024, required banks to strengthen their capital base in line with updated minimum capital thresholds. Over the 24-month period,

Nigerian banks collectively raised N4.65 trillion, with 72.55 per cent sourced domestically and 27.45 per cent from international investors a reflection of broad market confidence in the sector.

However, Unity Bank’s inability to conclude its merger within the regulatory timeline left it outside the list of institutions that secured full approval before the March 31 cut-off.

In a statement signed by the Director of Banking Supervision, Olubukola A. Akinwunmi, and the Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, the CBN stated that while most banks met the new capital requirements, “a limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.”

Although the apex bank assured that all banks remain fully operational and that banking services continue uninterrupted, the delay raises strategic questions about Unity Bank’s capital restructuring timeline and its ability to align swiftly with regulatory expectations in a tightening supervisory environment.

CBN Governor, Olayemi Cardoso, had emphasised that the recapitalisation exercise was designed to reinforce resilience, improve asset quality, strengthen capital adequacy ratios above Basel benchmarks, and ensure banks are well-positioned to withstand domestic and external shocks.

With minimum capital adequacy ratios maintained at 10 per cent for regional and national banks and 15 per cent for internationally authorised institutions, the recapitalisation programme also marked an orderly exit from regulatory forbearance and a shift toward stricter risk-based capital frameworks, including mandatory stress testing and enhanced capital buffers.

For Unity Bank, the stalled merger underscores the execution risks tied to consolidation-driven recapitalisation strategies, particularly where regulatory approvals are time-sensitive.

While the CBN has reiterated that supervisory and legal frameworks are in place to address pending cases, Unity Bank must now navigate the regulatory bottleneck swiftly to secure final approval and reposition itself within the strengthened capital regime that now defines Nigeria’s post-recapitalisation banking landscape.