The Central Bank of Nigeria (CBN) has approved the merger between Unity Bank and Providus Bank Limited, as announced by CBN’s acting Director of Corporate Communications, Hakama Sidi-Ali, in a statement on Tuesday in Abuja.
The merger is contingent on the CBN's financial support, which will address Unity Bank’s total obligations to the Central Bank and other stakeholders. This move aims to strengthen the banking sector and improve economic stability.
“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 organization.
“It is important to emphasize that no Nigerian bank currently faces a precarious situation comparable to that of Heritage Bank, which was recently liquidated.”
The CBN reaffirmed its commitment to depositors’ interests by ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.