CBN Approves merger of Unity Bank and Providus Bank
By Abimbola Mohammed
In a bid to bolster the stability of Nigeria’s financial system and avert potential systemic risks, the Central Bank of Nigeria (CBN) has granted the merger of Providus Bank and Unity Bank.
The new merger is for a pivotal financial accommodation to support the proposed merger between Unity Bank Plc and Providus Bank Limited.
The announcement was made by the CBN on its verified Twitter handle today. According to the CBN, the merger is contingent upon financial support from the CBN.
The fund will be instrumental in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders.
In a statement signed by Mrs. Sidi Ali, Acting Director, Corporate Communications, CBN, it read: “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 assured Nigerians that it is 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.
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