The Central Bank of Nigeria (CBN) has greenlit a significant financial arrangement to facilitate the proposed merger of Unity Bank and Providus Bank.
This approval, disclosed by the CBN’s acting Director of Corporate Communications, Hakama Sidi Ali, in a statement on Tuesday, August 6, is in line with the provisions of Section 42 (2) of the CBN Act, 2007.
In a bid to fortify Nigeria’s financial system and prevent potential systemic risks, the CBN has given the nod for this merger, citing the pivotal importance of the action. The CBN emphasized that the approval intends to enhance the stability of the country’s financial system.
As per the statement, the merger is conditional upon the financial support from the CBN, which will play a crucial role in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders. The CBN reiterated that its decision aligns with the provisions of Section 42 (2) of the CBN Act, 2007, and is essential for the financial well-being and operational stability of the post-merger entity.
Moreover, the CBN underscored that no Nigerian bank currently faces a precarious situation akin to the recent liquidation of Heritage Bank. The regulatory body reaffirmed its commitment to protecting depositors’ interests and ensuring the seamless functioning of the banking sector through proactive measures and strategic interventions.
Highlighting its dedication to upholding financial stability and fostering confidence in the banking system amid this transformative period, the CBN’s decision reflects its unwavering commitment to safeguarding the interests of depositors and the overall health of the banking industry.
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