The Central Bank of Nigeria (CBN) announced on Tuesday its approval of a significant financial accommodation to facilitate the proposed merger between Unity Bank Plc and Providus Bank Limited.
In a statement by its acting Director of Corporate Communications, Hakama Sidi-Ali, the apex bank explained that this move aims to strengthen the stability of the nation’s financial system and prevent potential systemic risks.
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“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,” the statement read.
“It is unequivocal to state that the CBN’s action is under 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.
“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 reiterated its commitment to protecting depositors’ interests and maintaining the stability of the banking sector through proactive measures and strategic interventions.
