The Central Bank of Nigeria (CBN) has granted approval for a significant financial support package to facilitate the proposed merger between Unity Bank Plc and Providus Bank Limited.
According to a statement released by Hakama Sidi-Ali, Acting Director of Corporate Communications, this strategic move aims to enhance the resilience of Nigeria’s financial sector and mitigate potential risks that could impact the entire system.
By providing this financial accommodation, the CBN seeks to promote a stable and robust financial environment, ultimately benefiting the nation’s economy.
“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 Central Bank of Nigeria (CBN) reaffirmed its unwavering dedication to protecting the interests of depositors and maintaining the stability of the banking system. Through forward-thinking initiatives and targeted interventions, the CBN is committed to ensuring the sector’s seamless operation and mitigating potential risks.
This proactive approach underscores the bank’s resolve to foster a secure and resilient financial landscape, ultimately upholding the trust and confidence of depositors and stakeholders alike.
