CBN approves merger of Unity, Providus banks
By Jeffrey Agbo
The Central Bank of Nigeria (CBN) has given its nod for the merger of Providus Bank and Unity Bank.
Acting Director, Corporate Communications of the CBN, Hakama Sidi, announced this in a statement on Tuesday, saying the move agrees with the provisions of Section 42 (2) of the CBN Act, 2007.
This follows a directive by the CBN for banks to increase their capital base.
The apex bank also announced approval of a pivotal financial accommodation to support the proposed merger between Unity Bank Plc and Providus Bank Limited.
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The statement read, “The Central Bank of Nigeria has granted approval for a pivotal financial accommodation to support the proposed merger between Unity Bank Plc and Providus Bank Limited. This strategic move is designed to bolster the stability of Nigeria’s financial system and avert potential systemic risks.
“The merger is contingent upon the financial support from the CBN. 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.”