Unity Bank Plc and Providus Bank Limited are set to merge after the Central Bank of Nigeria (CBN) granted the duo permission to forge ahead with the process.
A statement from the apex bank and made availabie to Business Diary Online on Tuesday, disclosed that, the move is designed to bolster the stability of Nigeria’s financial system
and avert potential systemic risks.
While the merger is contingent upon the financial support from the CBN, the banking regulatory body said, 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 in accordance with 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.
“Furthermore, 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 signed by acting director, Corporate Communications, CBN Mrs. Hakama Sidi Ali said.
The CBN, it stressed, remains committed to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions, adding that, “the CBN’s decision underscores its dedication to maintaining financial stability and promoting confidence in the banking system during this transformative period.”
