The Central Bank of Nigeria (CBN) has given the green light for Unity Bank Plc and Providus Bank Limited to merge. This merger aims to strengthen the financial system of the country and prevent any possible large-scale financial problems.
On Tuesday, the CBN announced that it has approved crucial financial help to make this merger possible. The announcement was made by Hakama Sidi-Ali, the acting Director of Corporate Communications for the CBN. According to Sidi-Ali, the main goal of this move is to support the nation’s financial stability and avoid any risks that could affect the entire system.
The merger depends on the financial support provided by the CBN. This support will help Unity Bank pay off its debts to the Central Bank and other stakeholders. The CBN stated that this action is in line with Section 42 (2) of the CBN Act, 2007, which allows such financial arrangements. This is necessary to ensure the financial health and smooth operation of the new, merged bank.
The CBN emphasized that no other Nigerian bank is currently in a critical situation similar to Heritage Bank, which was recently shut down. The CBN is dedicated to protecting the interests of depositors and maintaining the stability of the banking sector through proactive and strategic actions.
