CBN approves merger of Unity, Providus banks
The Central Bank of Nigeria (CBN) has approved a pivotal financial accommodation to support the proposed merger between Unity Bank and Providus Bank. CBN’s acting Director of Corporate Communications, Hakama Sidi Ali, disclosed this in a statement on Tuesday. According to the apex bank, the action is in accordance with the provisions of Section 42 […]
The Central Bank of Nigeria (CBN) has approved a pivotal financial accommodation to support the proposed merger between Unity Bank and Providus Bank.
CBN’s acting Director of Corporate Communications, Hakama Sidi Ali, disclosed this in a statement on Tuesday.
According to the apex bank, the action is in accordance with the provisions of Section 42 (2) of the CBN Act, 2007.
It said the approval is designed to bolster the stability of Nigeria’s financial system and avert potential systemic risks.
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The statement reads: “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. It is unequivocal to state that the CBN’s action is by 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 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.”
The development comes after the CBN raised capitalisation of banks.