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.
The Acting Director, Corporate Communications, Hakama Sidi-Ali, who announced this in a statement, said the move is designed to bolster the stability of Nigeria’s financial system and avert potential systemic risks
Sidi-Ali, who noted that the merger is contingent upon the financial support from the CBN, disclosed that the fund will be instrumental in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders.
According to the Director, the apex bank’s action is in accordance with the provisions of Section 42 (2) of the CBN Act, 2007, and the arrangement was 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, “she said.
The Director affirmed that the apex bank’s decision underscores its dedication to maintaining financial stability and promoting confidence in the banking system during the transformative period.
