The merger bid between Unity Bank Plc and Providus Bank limited on Tuesday received the Central Bank of Nigeria (CBN) authorisation.
The apex bank in a statement issued by the Acting Director, Corporate communications, Mrs Hakama Sidi Ali confirmed its approval.
The CBN’s decision 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.
According to the Apex Bank, the fund will be instrumental in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders.
In defence of its decision, apex bank premised its action inline 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. Furthermore, it is important to emphasise that no Nigerian bank currently faces a precarious situation comparable to that of Heritage Bank, which was recently liquidated”, CBN said.
The bank reiterated its commitment to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.
“The CBN’s decision underscores its dedication to maintaining financial stability and promoting confidence in the banking system during this transformative period”, it declared.
