The Central Bank of Nigeria (CBN) has given the green light for the merger between Unity Bank Plc and Providus Bank Limited, with a commitment to provide financial support to facilitate the process. In a statement, CBN’s acting director of corporate communications, Hakama Sidi Ali, explained that the merger is conditional upon the financial assistance from the apex bank.
The CBN stated that the fund will be crucial in settling Unity Bank’s outstanding obligations to the regulator and other stakeholders. The move aims to bolster the stability of Nigeria’s financial system and mitigate potential systemic risks.
The CBN emphasized that its action is in line with the provisions of Section 42 (2) of the CBN Act, 2007, and is essential for the financial health and operational stability of the post-merger entity.
In a joint statement, the management of Providus Bank and Unity Bank described the proposed merger as a strategic and complementary union that will leverage their strengths to create a leading financial institution. They aim to deliver an unparalleled banking experience by combining Unity Bank’s extensive branch network with Providus’s digital expertise.
The banks reassured their commitment to maintaining high standards of corporate governance, financial stability, and customer satisfaction. This development follows the recent revocation of Heritage Bank’s license and false reports of CBN planning to terminate the licenses of Unity, Polaris, and Keystone banks.
