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 strategic move is designed to bolster the stability of Nigeria’s financial system and avert potential systemic risks.

According to the Apex bank, 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 CBN said the 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.

Speaking on the financial stability test of other banks, the bank emphasised that no Nigerian bank currently faces a precarious
situation comparable to that of Heritage Bank, which was recently liquidated. The CBN said it remains committed to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.

The statement further said that the CBN’s decision underscores its dedication to maintaining financial stability and promoting confidence in the banking system during this transformative period.