By IDNN Economy Desk
The Asset Management Corporation of Nigeria (AMCON) has sold its 34.22% stake in Unity Bank to Providus Bank, a transaction expected to reshape the landscape of Nigeria’s mid-tier banking.
AMCON described the sale as part of its ongoing mandate to divest from rescued financial institutions, while Providus Bank said the acquisition strengthens its retail footprint.
Nigeria’s Banking Reform Push
AMCON has held controlling stakes in troubled banks for more than a decade, often criticised for delays in divestment. Unity Bank, weighed down by non-performing loans, has struggled to retain market confidence.
Analysts note that while Providus’ entry may boost liquidity and governance, the opacity of the transaction process raises concerns. “Who benefits beyond the balance sheet?” asked a Lagos-based financial analyst.
Investor Confidence on the Line
For Nigeria’s banking industry, the deal signals renewed appetite for mergers and acquisitions. But unless regulatory oversight is strengthened, scepticism about transparency could undermine the broader reform agenda.
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