The Central Bank of Nigeria (CBN) has approved the merger of Providus Bank and Unity Bank.
The approval was announced in a statement signed by the acting Director, Corporate Communications, Hakama Sidi, on Tuesday.
The merger, which is the first to be approved since the CBN’s mandate to increase its minimum capital base, is aimed at averting potential systemic risks and ensuring the financial health and operational stability of the post-merger organization.
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.”
Unity Bank, which commenced operations in January 2006, was formed through the merger of nine banks.
