The Central Bank of Nigeria (CBN) has granted approval for a financial accommodation to support the proposed merger between Unity Bank Plc and Providus Bank Limited.
The CBN said in a statement signed by Hakama Sidi Ali, acting director of corporate communications, that the move is designed to bolster the stability of Nigeria’s financial system and avert potential systemic risks.
It 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.”
“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.
“Furthermore, it is important to emphasise that no Nigerian bank currently faces a precarious
situation comparable to that of Heritage Bank, which was recently liquidated. The CBN
remains committed to safeguarding depositors’ interests and ensuring the smooth functioning
of the banking sector through proactive measures and strategic interventions.
“The CBN’s decision underscores its dedication to maintaining financial stability and
promoting confidence in the banking system during this transformative period,” the statement noted.
