The Central Bank of Nigeria (CBN) has approved the merger arrangement between Unity Bank Plc and Providus Bank Limited. The announcement was made by the bank’s spokesperson, Mr. Hakama Sidi Ali, in Abuja last night.

According to Mrs. Sidi Ali’s statement, “The CBN has approved a crucial financial support package to facilitate the merger of Unity Bank Plc and Providus Bank Limited. This strategic initiative aims to enhance the stability of Nigeria’s financial system and mitigate potential systemic risks.

The merger is dependent on financial backing from the CBN, which will be vital in settling Unity Bank’s obligations to the Central Bank and other stakeholders.

It is important to note that this action is in line with Section 42 (2) of the CBN Act, 2007. This support is essential for ensuring the financial health and operational stability of the merged entity.

Additionally, it should be noted that no Nigerian bank is currently in a precarious situation akin to that of the recently liquidated Heritage Bank.

The CBN remains committed to protecting depositors’ interests and ensuring the smooth operation of the banking sector through proactive measures and strategic interventions. This decision highlights the CBN’s dedication to maintaining financial stability and fostering confidence in the banking system during this transformative period.”