The Central Bank of Nigeria (CBN) has approved financial support to facilitate the proposed merger between Unity Bank Plc and Providus Bank Limited.
This move aims to strengthen the stability of Nigeria’s financial system and mitigate potential systemic risks.
In a statement signed by Hakama Sidi Ali, acting director of corporate communications, the CBN explained that the merger’s success is contingent on this financial assistance.
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“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,” the statement noted.
The CBN emphasized that the merger’s approval relies heavily on this support, underscoring the importance of the financial aid in ensuring a smooth transition and operational stability for the new entity formed by the merger.
