CBN approves merger of Unity, Providus banks

The Central Bank of Nigeria (CBN) announced on Tuesday that it has officially approved a significant financial arrangement to facilitate the merger of Unity Bank Plc and Providus Bank Limited.

In a statement released by Hakama Sidi-Ali, the acting Director of Corporate Communications, the CBN highlighted that this decision aims to strengthen the stability of Nigeria’s financial system and mitigate potential systemic risks.

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“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,” the statement read.

“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 organisation.

“It is important to emphasise that no Nigerian bank currently faces a precarious situation comparable to that of Heritage Bank, which was recently liquidated.”

The CBN said it remains committed to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.

Proofreading and editing by Fa’izatu Aliyu Doma, Journalist at Neptune Prime.

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