The Central Bank of Nigeria (CBN) has approved the merger of Providus Bank and Unity Bank, marking a significant development in the country’s financial sector.
The announcement was made on Tuesday in a statement signed by the acting Director of Corporate Communications, Hakama Sidi. The decision aligns with the provisions of Section 42 (2) of the CBN Act, 2007.
This merger is notable as the first to be approved under the CBN’s recent mandate to increase the minimum capital base for banks.
The central bank also confirmed the provision of pivotal financial accommodation to support the merger, highlighting its commitment to maintaining the stability of Nigeria’s financial system and preventing potential systemic risks.
The statement from the CBN read, “The Central Bank of Nigeria has granted approval for a pivotal financial accommodation to support the proposed merger between Unity Bank Plc and Providus Bank Limited. 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. It is unequivocal to state that the CBN’s action is in accordance with 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.”
