The Central Bank of Nigeria (CBN) has approved financial assistance to facilitate the merger between Unity Bank Plc and Providus Bank Limited, a move aimed at strengthening Nigeria’s financial system and mitigating systemic risks.
Thank you for reading this post, don't forget to subscribe!In a statement on Tuesday, the CBN’s Acting Director of Corporate Communications, Mrs. Sidi Ali Hakama, emphasized the importance of this support, stating, “This strategic move is designed to bolster the stability of Nigeria’s financial system and avert potential systemic risks.”
The success of the merger hinges on this financial backing from the CBN, which will help Unity Bank address its total obligations to the Central Bank and other stakeholders. The support aligns with the provisions of Section 42 (2) of the CBN Act, 2007, and is considered essential for ensuring the financial health and operational stability of the newly merged entity.
Mrs. Hakama also clarified that no Nigerian bank currently faces a situation as critical as that of Heritage Bank, which was recently liquidated. The CBN remains committed to protecting depositors’ interests and maintaining the smooth operation of the banking sector through proactive measures and strategic interventions.
“The CBN’s decision underscores its dedication to maintaining financial stability and promoting confidence in the banking system during this transformative period,” the statement concluded.
