Providus Bank has confirmed that it has exceeded the Central Bank of Nigeria’s (CBN) revised minimum capital requirement for regional commercial banks, raising its capital base to N65 billion.
The bank disclosed this in a statement issued to customers, clarifying recent media reports and reaffirming its compliance with the ongoing recapitalisation exercise in the banking sector.
Under the CBN’s recapitalisation framework, regional commercial banks are required to maintain a minimum capital base of N50 billion. Providus Bank stated that it has met this threshold since January 2025 and has now surpassed it.
“Providus Bank confirms that it has met its capital requirement since January 2025 and currently has a capital base of N65 billion, which is in excess of its capital requirement,” the statement said.
The development comes as the bank advances its planned acquisition of Unity Bank, a financially distressed lender with a long history of asset quality challenges.
In August 2024, Providus Bank received preliminary approval from the CBN to absorb Unity Bank, which emerged from the 2006 consolidation of nine banks but has struggled with legacy non-performing loans and accumulated losses over the years.
To support the transaction and avert systemic risk, the apex bank had earlier injected a N700 billion facility to stabilise the combined entity.
Integration processes between both institutions are already underway, following shareholder approval of the merger scheme at a meeting held on September 26, 2025, in Abeokuta.
Under the agreed terms, Unity Bank shareholders were offered either a cash consideration of N3.18 per share or a share swap of 18 ordinary shares in Providus Bank for every 17 shares held.
Analysts say the transaction could significantly strengthen Providus Bank’s market position, potentially transitioning it from a regional player to a national lender upon completion of the deal. Unity Bank’s extensive footprint of about 240 branches—roughly ten times that of Providus—could further accelerate this expansion.
