CBN approves Unity, Providus banks’ merger

The Central Bank of Nigeria (CBN) has granted approval for the proposed merger between Unity Bank Plc and Providus Bank Limited.

CBN’s spokesperson, Sidi Ali Hakama, disclosed this in a statement on Tuesday evening.

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Hakama said this strategic move is designed to bolster the stability of Nigeria’s financial system and avert potential systemic risks.

“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,” Hakama noted.

She added that the CBN’s action is in accordance with the provisions of Section 42 (2) of the CBN Act, 2007.

According to her,this arrangement is crucial for the financial health and operational stability of the post- merger organisation.

Hakama also noted that no Nigerian bank currently faces a precarious situation comparable to that of Heritage Bank, which was recently liquidated.

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She added that the apex bank remains committed to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.