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 apex bank, in a statement issued on Tuesday by its Acting Director, Communication Communications Department, Mrs. Hakama Sidi Ali, disclosed that this strategic move was designed to bolster the stability of Nigeria’s financial system and avert potential systemic risks.
She clarified that the merger was contingent upon the financial support from the CBN and that the fund would be instrumental in addressing Unity Bank’s total obligations to the apex bank and other stakeholders.
The Acting Director stated: “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”, she added.
