The Central Bank of Nigeria (CBN) has authorized a merger between Unity Bank Plc and Providus Bank Limited.
This merger, supported by the CBN’s financial intervention, aims to enhance the stability of Nigeria’s financial system and mitigate potential systemic risks.
The CBN’s Acting Director of Corporate Communications, Hakama Sidi Ali, explained that the financial assistance will be essential in addressing Unity Bank’s obligations to the CBN and other stakeholders.
This support aligns with Section 42 (2) of the CBN Act, 2007, and is vital for the financial health and operational stability of the merged entity.
The CBN assured that no Nigerian bank is currently in a vulnerable position like Heritage Bank, which was recently liquidated.
The CBN said it is committed to protecting depositors and ensuring the smooth operation of the banking sector through proactive and strategic measures.
