CBN Approves Merger of Unity Bank, Providus Bank

The Central Bank of Nigeria (CBN) has announced its approval of a crucial financial accommodation to support the proposed merger of Unity Bank Plc and Providus Bank Limited.

CBN disclosed the approval in a statement signed by its Acting Director of Corporate Communications, Hakama Sidi-Ali on Tuesday.

The approved merger represents the first of its kind authorized by CBN after its mandate to increase the minimum capital base.

According to the statement, the merger was contingent upon financial support from CBN, which will address Unity Bank’s total obligations to the Central Bank and other stakeholders.

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It revealed that CBN’s action was in line with the provisions of Section 42(2) of the CBN Act, 2007, and was crucial for the financial health and operational stability of the post-merger organization.

Sidi-Ali explained that no Nigerian bank currently faces a precarious situation comparable to that of Heritage Bank, which was recently liquidated.

She assured that CBN remained committed to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.

The director stated that CBN’s decision underscored its dedication to maintaining financial stability and promoting confidence in the banking system during this transformative period.