The Central Bank of Nigeria (CBN) has officially approved a significant financial package to facilitate the merger between Unity Bank Plc and Providus Bank Limited. This decision, announced on August 6, 2024, aims to enhance the stability of Nigeria’s financial system and mitigate potential systemic risks.
According to Hakama Sidi-Ali, the acting Director of Corporate Communications at the CBN, the merger is contingent on the financial support provided by the central bank. This funding is crucial for addressing Unity Bank’s total obligations to the CBN and other stakeholders. The CBN’s actions are in line with Section 42 (2) of the CBN Act, 2007, emphasizing the importance of this arrangement for the financial health and operational stability of the merged entity.
Sidi-Ali also reassured the public that no other Nigerian bank is currently in a precarious situation akin to that of Heritage Bank, which was recently liquidated due to financial instability. The CBN remains committed to protecting depositors’ interests and ensuring a smooth banking sector operation through proactive strategies and interventions during this transformative period.