The Central Bank of Nigeria (CBN) has granted approval for a financial accommodation to support the proposed merger between Unity Bank Plc and Providus Bank Limited.
This move is aimed at boosting the stability of the nation’s financial system and averting potential systemic risks.
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The CBN’s acting Director of Corporate Communications, Hakama Sidi-Ali, made this known in a statement on Tuesday.
According to Sidi-Ali, the merger is contingent upon the financial support from the CBN, which will be instrumental in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders.
“The fund will be used to address Unity Bank’s total obligations to the Central Bank and other stakeholders,” Sidi-Ali said. “This arrangement is crucial for the financial health and operational stability of the post-merger organisation.”
The CBN emphasized that its action is under the provisions of Section 42 (2) of the CBN Act, 2007. “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 statement read.
