The Central Bank of Nigeria (CBN) has approved a significant financial accommodation to facilitate the proposed merger between Unity Bank Plc and Providus Bank Ltd.
In a statement by the CBN’s Acting Director of Corporate Communications, Mrs. Hakama Sidi-Ali, the move aims to enhance the stability of Nigeria’s financial system and prevent potential systemic risks.
Sidi-Ali emphasized that the merger hinges on 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,” she said.
She clarified that the CBN’s action aligns with 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,” she added.
Sidi-Ali also noted that no Nigerian bank currently faces a situation as precarious as that of Heritage Bank, which was recently liquidated.
“The apex bank remains committed to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions,” she said.
“The CBN’s decision underscores its dedication to maintaining financial stability and promoting confidence in the banking system during this transformative period,” Sidi-Ali concluded.
