The Central Bank of Nigeria (CBN) has given an approval for pivotal financial accommodation to support the proposed merger between Unity Bank and Providus Bank.
The move is designed to bolster the stability of Nigeria’s financial system.
In a press release, the Acting Director of Communication, CBN, Mrs. Sidi Ai Hakama said on Tuesday (today, August 6) that “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.”
“It Is unequivocal to state that the CBN’s action is in accordance with the provision of section 42(2) of the CBN Act, 2007. This arrangement is crucial for the financial health and operational stability of the post-merger organocation,” she said.
Mrs. Halama stressed in the release that no Nigerian bank is currently facing a precarious situation comparable “to that of Heritage bank, which was recently liquidated,” affirming that the CBN remains committed to safeguarding depositors’ interest.
“The CBN’s decision underscores its dedication to maintaining financial stability and promoting confidence in the banking system during this transformative period,” she surmised.
