The Central Bank of Nigeria (CBN) has approved significant financial assistance to support the proposed merger between Unity Bank Plc and Providus Bank Limited.
A statement signed by the Central Bank’s Acting Director of Corporate Communications, Mr. Takamatsu Sidiali, said the approval of the financial assistance for the merger is a strategic measure aimed at strengthening the stability of the Nigerian financial system and avoiding potential systemic risks. The merger is dependent on financial assistance from the CBN.
The central bank said the fund will help meet Unity Bank’s overall obligations to the central bank and other stakeholders.
Journalists reported that the CBN’s measures were in compliance 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 organization.
Furthermore, it is important to emphasize 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,” the CBN spokesman added.
