The Central Bank of Nigeria (CBN) has approved financial accommodation to support Unity Bank Plc’s proposed merger with Providus Bank Limited.
In a statement released Tuesday, Mrs. Sidi Ali Hakama, the Acting Director of Corporate Communications at the CBN, stated, “This strategic move is designed to bolster the stability of Nigeria’s financial system and avert potential systemic risks.”
She emphasized that the merger hinges on financial backing from the CBN, which will be crucial in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders.
“The CBN’s action aligns with the provisions of Section 42 (2) of the CBN Act, 2007. This arrangement is essential for the post-merger organization’s financial health and operational stability,” Mrs. Hakama noted.
She also disclosed that every Nigerian bank faces a precarious situation similar to that of Heritage Bank, which was recently liquidated.
She added, “The CBN remains committed to safeguarding depositors’ interests and ensuring the smooth functioning 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.”
Comment, Like 👍, share this article, and Follow us on our social media handles.
WhatsApp Channel
Telegram Channel
 has approved financial support for the merger between Unity Bank Plc and Providus Bank Limited to enhance financial stability and prevent systemic risks.){kind=link}