The Central Bank of Nigeria (CBN) has sanctioned the merger between Unity Bank and Providus Bank. This is contained in a press release by Hakama Sidi Ali, Acting Director, Corporate Communications of the apex bank. Both banks are tier two banks in the country.
“The Central Bank of Nigeria (CBN) has granted approval for a pivotal financial accommodation to support the proposed merger between Unity Bank Plc and Providus Bank Limited. This strategic move is designed to bolster the stability of Nigeria’s financial system and avert potential systemic risks,” Sidi Ali said.
“The merger is contingent upon the financial support from the CBN. The fund will be instrumental in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders. It is unequivocal to state that the CBN’s action is in accordance with the provisions of Section 42 (2) of the CBN Act, 2007. This arrangement is crucial for the financial health and operational stability of the post-merger organisation,” she added.
The apex bank emphasised that no Nigerian bank currently faces a precarious situation comparable to that of Heritage Bank, which was recently liquidated, adding that it remains committed to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.
The CBN stated that its decision underscored its dedication to maintaining financial stability and promoting confidence in the banking system during this transformative period.
