The Central Bank of Nigeria (CBN) has approved financial accommodation to support the proposed merger between Unity Bank Plc and Providus Bank Limited.
Details of the approval are contained in a statement released by the CBN’s Acting Director of Corporate Communications, Hakama Sidi Ali,
The statement says the CBN granted approval for a pivotal financial accommodation to support the proposed merger, adding that the move is strategic, designed to bolster the stability of Nigeria’s financial system and avert potential systemic risks.
The Apex bank also said the merger is contingent upon its financial support, which is essential for the financial health and operational stability of the new entity’s post-merger era.
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While the apex bank failed to disclose the amount of financial support approved for the merger, sources confirmed that N70 billion naira was approved.
The statement also says that the financial support provided by the CBN is pivotal to addressing Unity Bank’s total obligations to the Central Bank and other stakeholders and is consistent with provisions of the CBN Act, 2007.
The Central Bank emphasized that no Nigerian bank currently faces a precarious situation comparable to that of Heritage Bank, which was recently liquidated, adding that the CBN remains dedicated to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.
The Central Bank of Nigeria (CBN) recently revoked the banking licence of Heritage Bank Plc with immediate effect, citing the bank’s persistent financial instability and breach of regulatory requirements
(Editor: Oloyede Oworu)
