The Central Bank of Nigeria (CBN) has approved a significant financial support package to facilitate the proposed merger between Unity Bank Plc and Providus Bank Limited.
This announcement was made on Tuesday by Hakama Sidi-Ali, the acting Director of Corporate Communications for the CBN.
Sidi-Ali stated that this initiative is intended to strengthen the stability of Nigeria’s financial system and prevent potential systemic risks. The CBN remains dedicated to protecting depositors’ interests and ensuring the smooth operation of the banking sector through proactive measures and strategic interventions.
The statement read, in part, “The merger relies on financial support from the CBN. The provided funds will be essential in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders. It should be clearly stated that the CBN’s action is in accordance with Section 42 (2) of the CBN Act, 2007. This support is crucial for the financial health and operational stability of the merged entity.”
The CBN also emphasized that no Nigerian bank currently faces a situation as critical as that of Heritage Bank, which was recently liquidated.
