Central Bank of Nigeria Approves Merger of Providus Bank and Unity Bank, Grants Financial Support for Stability
The Central Bank of Nigeria (CBN) has approved the merger of Providus Bank and Unity Bank.
In a statement signed by the acting Director of Corporate Communications, Hakama Sidi, the apex bank confirmed the approval in accordance with Section 42 (2) of the CBN Act, 2007. This marks the first merger approved following the central bank’s mandate to increase the minimum capital base.
The CBN also announced the approval of financial support for the merger between Unity Bank Plc and Providus Bank Limited. This strategic move aims to enhance the stability of Nigeria’s financial system and mitigate potential systemic risks.
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.”
Reports indicate that Providus Bank Limited has been planning to acquire a majority stake in Unity Bank Plc for over a year. This development is part of Providus Bank’s expansion strategy and a significant initiative to strengthen its capital base amid current recapitalisation challenges.
Source: Punch
