The Central Bank of Nigeria (CBN) has announced its approval of a crucial financial accommodation to facilitate the proposed merger between Unity Bank Plc and Providus Bank Limited. This move aims to enhance the stability of Nigeria's financial system and mitigate potential systemic risks.
According to a statement by CBN's acting Director of Corporate Communications, Hakama Sidi-Ali, the merger is contingent upon the financial support from the CBN. The funds will be instrumental in addressing Unity Bank's total obligations to the Central Bank and other stakeholders.
The CBN emphasized that its action is in line with Section 42 (2) of the CBN Act, 2007, and is crucial for the financial health and operational stability of the post-merger organization. The apex bank reassured that no Nigerian bank currently faces a situation as precarious as that of Heritage Bank, which was recently liquidated.
The CBN reaffirmed its commitment to protecting depositors' interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.