The acceptance of a crucial financial arrangement to support the proposed merger of Unity Bank Plc and Providus Bank Limited was announced by the Central Bank of Nigeria (CBN) on Tuesday.
The action is intended to strengthen the stability of the country’s financial system and prevent any systemic concerns, according to a statement from the top bank, which was provided by its interim Director of Corporate Communications, Hakama Sidi-Ali.
“The merger is contingent upon 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 said it remains committed to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.
