August 6, 2024
By Osaiyekemwen Confidence
The Central Bank of Nigeria (CBN) announced on Tuesday its approval for a crucial financial accommodation to support the proposed merger between Unity Bank Plc and Providus Bank Limited.
In a statement by its acting Director of Corporate Communications, Hakama Sidi-Ali, the apex bank emphasized that the merger aims to bolster the stability of Nigeria’s financial system and mitigate 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,” the statement read.
The CBN clarified that its actions are in accordance with Section 42 (2) of the CBN Act, 2007, and highlighted the importance of this arrangement 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 statement added.
The CBN reiterated its commitment to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.
