CBN Approves Merger of Unity, Providus BanksJames Emejo in Abuja

The Central Bank of Nigeria (CBN) Tuesday said it has granted approval for a pivotal financial accommodation to support the proposed merger between Unity Bank Plc and Providus Bank Limited.

CBN said the strategic move was designed to bolster the stability of the country’s financial system and avert potential systemic risks.
In a statement by acting CBN Director, Corporate Communications Department, Mrs. Hakama Sidi Ali, the apex bank said the merger is contingent upon the financial support from the CBN.

She said the fund will be instrumental in addressing Unity Bank’s total obligations to the central bank and other stakeholders.
Sidi Ali said the CBN’s action was in accordance with the provisions of Section 42 (2) of the CBN Act, 2007.

According to her, “This arrangement is crucial for the financial health and operational stability of the post-merger organisation.”
The central bank further stressed that no Nigerian bank currently faces a precarious situation comparable to that of Heritage Bank, which was recently liquidated.

The apex bank also reiterated its commitment to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.
The CBN acting director added that the “CBN’s decision underscores its dedication to maintaining financial stability and promoting confidence in the banking system during this transformative period.”