The Central Bank of Nigeria (CBN) announced on Tuesday, August 6, 2024, its approval for a pivotal financial arrangement to support the proposed merger between Unity Bank Plc and Providus Bank Limited.
In a statement by the acting Director of Corporate Communications, Hakama Sidi-Ali, the apex bank emphasized that this move is designed to bolster the stability of the nation’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,” the statement read.
“This 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 organization,” Sidi-Ali added.
The CBN also reassured the public, stating, “It is important to emphasize that no Nigerian bank currently faces a precarious situation comparable to that of Heritage Bank, which was recently liquidated,” He stated.
