The Central Bank of Nigeria (CBN) has announced its approval of a significant financial package to support the proposed merger between Unity Bank Plc and Providus Bank Limited. The apex bank, in a statement by its acting Director of Corporate Communications, Hakama Sidi-Ali, stated that the move is designed to enhance the stability of the nation’s financial system and avert potential systemic risks.

“The merger is contingent upon the financial support from the CBN. The fund will be instrumental in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders,” the statement read. “It is unequivocal to state that the CBN’s action is under the provisions of Section 42 (2) of the CBN Act, 2007,” the statement read in part.

It added: “This arrangement is crucial for the financial health and operational stability of the post-merger organisation. It is important to emphasise 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.