The Central Bank of Nigeria (CBN) has approved the merger between Unity Bank and the Providus Bank Limited.
The CBN’s acting Director of Corporate Communications, Hakama Sidi-Ali, disclosed this in a statement on Tuesday in Abuja.
READ ALSO: Just in: Again, CBN raises Interest Rate to 26.75%
The statement read: “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.
“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.”
The CBN reaffirmed its commitment to depositors’ interests by ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.