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The Central Bank of Nigeria (CBN) has granted approval for significant financial support to facilitate the proposed merger between Unity Bank Plc and Providus Bank Limited.
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This strategic intervention aims to enhance the stability of Nigeria’s financial system and mitigate potential systemic risks, according to a statement signed by Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali.
But the merger is contingent upon this financial backing from the CBN crucial to addressing Unity Bank’s obligations to the CBN and other stakeholders.
Nigeria’s financial regulator emphasized that this action aligns with the provisions of Section 42 (2) of the CBN Act, 2007. It highlighted its importance for the financial health and operational stability of the merged entity.
The CBN reassured the public that no other Nigerian bank currently faces a precarious situation like that of Heritage Bank, which was recently liquidated. The CBN remains committed to protecting depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.
This decision underscores the CBN’s dedication to maintaining financial stability and promoting confidence in the banking system during this transformative period.
