The Central Bank of Nigeria (CBN) has sanctioned a 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 CBN said the move is to bolster the stability of the nation’s financial system and avert potential systemic risks.
The CBN. said the merger is contingent upon the financial support from the CBN and that the fund will be instrumental in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders.
“It is unequivocal to state that the CBN’s 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 organisation.
“It is important to emphasise that no Nigerian bank currently faces a precarious situation comparable to that of Heritage Bank, which was recently liquidated,” the statement pointed out.
The CBN reiterated its commitment to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.
