Breaking: CBN approves merger of Providus Bank and Unity Bank

The Central Bank of Nigeria (CBN) has approved a financial package to facilitate the merger of two commercial banks: Unity Bank Plc and Providus Bank Limited. The apex bank, in a statement issued Tuesday by Acting Director of Corporate Communications Hakama Sidi-Ali, explained that the move is aimed at safeguarding the stability of Nigeria's financial system.

“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. 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.”

This move follows the recent revocation of the banking licence of Heritage Bank Plc by the CBN due to the bank’s persistent financial instability and breach of regulatory requirements.