CBN Approves Merger of Unity, Providus Banks

The Central Bank of Nigeria (CBN) has given its approval for the merger of Unity Bank Plc and Providus Bank Limited, citing the need to strengthen the stability of the nation’s financial system.

In a statement released on Tuesday by its acting Director of Corporate Communications, Hakama Sidi-Ali, CBN explained that the merger is contingent upon a significant financial accommodation provided by the apex bank. The fund will be used to address Unity Bank’s total obligations to the CBN and other stakeholders.

The CBN assured that the move is aimed at preventing potential systemic risks and maintaining the stability of the banking sector. The apex bank reiterated its commitment to protecting depositors’ interests and promoting financial confidence.

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 emphasized that no Nigerian bank currently faces a precarious situation comparable to that of Heritage Bank, which was recently liquidated.

Customers of both banks are advised to remain informed about developments regarding the merger.