By Aisha Muhammad Magaji
Unity Bank Plc has debunked reports suggesting that Providus Bank acquired shares of the Asset Management Corporation of Nigeria (AMCON) in the bank, stressing instead that the transaction involved an existing shareholder.
The clarification came from the Chairman of Unity Bank, Mr. Aminu Babangida, who addressed the issue during an interactive session with journalists in Lagos on Thursday.
Earlier in the week, reports circulated in sections of the media alleging that Providus Bank had taken a stake in Unity Bank through the acquisition of AMCON’s shares. The news sparked widespread speculation about the future ownership structure and control of the lender.
However, Babangida insisted those reports were inaccurate.
“The shares of AMCON in Unity Bank were not sold to Providus Bank. They were acquired by one of our existing shareholders,” the Chairman clarified. “We believe it is important to correct this narrative so the public is not misled about the bank’s current position.”
Unity Bank, one of Nigeria’s mid-tier lenders, has faced financial headwinds in recent years but has continued to pursue restructuring and recapitalization strategies. The sale of AMCON’s shares is seen as part of the broader effort to stabilize the bank’s balance sheet and attract fresh investment.
Babangida stressed that the development should be interpreted as a positive signal for the bank’s future.
“When an existing shareholder increases their stake, it demonstrates continued confidence in the bank’s potential,” he said. “We are focused on building resilience, expanding our market share, and delivering greater value to customers and stakeholders.”
Analysts believe the confusion may have arisen because Providus Bank has recently been active in strategic acquisitions and partnerships within Nigeria’s financial sector. The rumor of its involvement in Unity Bank’s shareholding structure, though inaccurate, was plausible enough to gain traction.
Financial analyst, Dr. Uche Okafor, explained that such speculation highlights the sensitivity of the Nigerian banking industry to ownership changes. “Any news about new investors in a bank immediately raises questions about governance, regulatory approval, and the direction of the business. That’s why Unity Bank’s prompt clarification is critical,” he said.
Babangida further assured that the transaction followed due process and had the full backing of regulators. “The Central Bank of Nigeria (CBN) and other relevant authorities were duly notified. We remain in compliance with all requirements guiding such transactions,” he noted.
He also emphasized that Unity Bank remains committed to transparency and accountability, particularly as it continues to rebuild trust among investors and depositors.
Despite challenges, Unity Bank has sustained operations across its retail and agribusiness banking segments. The bank has built a strong presence in supporting farmers through various Central Bank intervention schemes, including the Anchor Borrowers’ Programme.
Industry watchers believe the latest transaction could provide the lender with much-needed breathing space. “For a bank like Unity, shareholder consolidation is a good sign. It means fewer uncertainties about ownership and potentially more cohesive decision-making,” said investment consultant, Amina Yusuf.
The news of the clarification was met with cautious optimism by stakeholders. Some shareholders welcomed the move, seeing it as a reaffirmation of the bank’s stability. Others, however, urged Unity Bank’s management to communicate more proactively in order to avoid misinformation in the future.
One retail investor, who spoke on condition of anonymity, said: “These rumors can affect customer confidence and even cause panic. It’s good that the bank came out quickly to put the facts straight.”
Unity Bank has reiterated its commitment to recapitalization efforts as mandated by the CBN. The bank aims to strengthen its capital base to meet regulatory requirements and compete effectively in Nigeria’s evolving financial landscape.
Babangida concluded by calling on stakeholders to remain supportive of the bank’s ongoing transformation. “We are in a rebuilding phase. With the support of our shareholders, customers, regulators, and staff, Unity Bank will not only survive but thrive,” he said.
The clarification by Unity Bank underscores the importance of transparency in Nigeria’s financial sector, where ownership changes can trigger speculation and uncertainty. By addressing the rumors head-on, the bank has sought to reassure its stakeholders that its restructuring remains on track and that its ownership structure is intact.
For Unity Bank, the coming months will be crucial in determining whether renewed investor confidence can translate into long-term growth and stability.
