By Abiola Olawale
The Central Bank of Nigeria (CBN) on Tuesday announced the approval of a financial accommodation to support a proposed merger between Unity Bank Plc and Providus Bank Limited.
This was unveiled in a press release issued by the CBN’s Acting Director of Corporate Communications, Mrs Hakama Sidi Ali.
Ali, in the statement, explained that the merger is contingent upon this financial support, which is essential for the financial health and operational stability of the post-merger organization.
The statement noted that the financial support provided by the CBN is pivotal for addressing Unity Bank’s total obligations to the Central Bank and other stakeholders.
According to Ali, the CBN’s action is in line with the provisions of Section 42 (2) of the CBN Act, 2007.
The statement reads in part: “The Central Bank of Nigeria (CBN) has approved a financial accommodation to support the proposed merger between Unity Bank Plc and Providus Bank Limited. This strategic move is designed to bolster the stability of Nigeria’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.
“It is unequivocal to state that the CBN’s action is by 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.”
