Nigerian apex bank, the Central Bank of Nigeria (CBN) has disclosed in a statement signed by its Acting Director of Corporate Communications, Hakama Sidi-Ali on Tuesday, the approval to merger of Unity Bank Plc and Providus Bank Limited.
The approved merger represents the first of its kind authorized by CBN after its mandate to increase the minimum capital base.
In the statement, the merger was crucial upon financial support from CBN, which will address Unity Bank’s total obligations to the Central Bank and other stakeholders.
It revealed that CBN’s action was in line with the provisions of Section 42(2) of the CBN Act, 2007, and was paramount for the financial and operational stability of the post-merger organization.
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The acting Corporate Communication Director, Sidi-Ali explained in a statement that no Nigerian bank currently faces a precarious situation like that of Heritage Bank, which was liquidated recently.
She assured that CBN remained committed to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.
She disclosed that during this transformative period, CBN’s decision underscored its dedication to maintaining financial stability and promoting confidence in the banking system.
