The Central Bank of Nigeria (CBN) 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.
According to the CBN, the merger is contingent upon financial support from the apex bank, which will be instrumental in addressing Unity Bank’s total obligations to the CBN and other stakeholders. The approval was detailed in a statement signed by Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN, noting that this arrangement is crucial for the financial health and operational stability of the post-merger organization.
The CBN emphasized that its action is in accordance with the provisions of Section 42 (2) of the CBN Act, 2007. The statement highlighted that no Nigerian bank currently faces a precarious situation comparable to that of Heritage Bank, which was recently liquidated.
The CBN remains committed to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions. This decision underscores the CBN’s dedication to maintaining financial stability and promoting confidence in the banking system during this transformative period.
In a joint statement, the management of Providus Bank Ltd and Unity Bank Plc expressed their pleasure in announcing the merger, marking a significant milestone in the evolution of the respective institutions.
They described the merger as a strategic and complementary union that will leverage the strengths of both banks to create a leading financial institution in the industry with footprints in retail, corporate, commercial, and digital banking.
Unity Bank Plc, with its rich legacy of over 18 years, has established a robust retail banking network comprising more than 220 branches nationwide and a strategic niche in the agricultural business. Providus Bank Limited is renowned for its innovative approach to banking, boasting a strong digital footprint, innovative products, high-quality service culture, and a strong focus on helping customers grow.
The combination is driven by a shared vision to provide an unparalleled banking experience to customers. By combining Unity Bank’s extensive branch network and deep-rooted customer relationships with Providus’s digital prowess and innovative spirit, the merged entity aims to deliver a seamless blend of traditional and modern banking services.
Customers will benefit from an expanded suite of products and services, greater convenience, and improved access to banking solutions across various channels. The integration of digital platforms will offer enhanced security, faster transactions, and a more personalized banking experience.
The united team of dedicated professionals from both banks will work tirelessly to ensure a smooth transition and continued tradition of excellence in all operations. This combination signifies the beginning of a new chapter in the shared history of both institutions, one that is filled with promise and potential. The merged entity is expected to create a formidable force in the banking sector, driving innovation, growth, and prosperity for customers, employees, and stakeholders.
The statement concluded by extending heartfelt gratitude to the Central Bank of Nigeria for their consideration and approval, and to customers, employees, and partners for their unwavering support. The combined entity is poised to achieve greater heights and redefine the future of banking in Nigeria.
