Governor, Central Bank of Nigeria (CBN)
The Central Bank of Nigeria (CBN) has granted approval for a pivotal financial accommodation to support the proposed merger between Unity Bank Plc and Providus Bank Limited.
This was made known in a statement on Tuesday by the Director of Corporate Communications at the CBN, Mrs Hakama Sidi-Ali.
She said the strategic move was designed to strengthen the stability of the financial system and avert systemic risks, adding that the merger is contingent upon the financial support from the CBN.
Sidi-Ali further said that the fund will be instrumental in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders.
The image maker of the apex bank insisted that the action of the CBN is in accordance with its provisions.
“It is unequivocal to state that the CBN’s action is in accordance with 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,” she asserted.
She however clarified that no bank in Nigeria faces the uncertainty position in which Heritage Bank Plc was before it was liquidated.
She affirmed: “Furthermore, it is important to emphasise that no Nigerian bank currently faces a precarious situation comparable to that of Heritage Bank, which was recently liquidated..”
She equally assured that the CBN remains committed to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.
The CBN’s decision, Sidi Ali insisted, underscores its dedication to maintaining financial stability and promoting confidence in the banking system during this transformative period.
