BREAKING: CBN merges Unity, Providus Banks

The Central Bank of Nigeria, CBN on Tuesday approved the merger of Unity and Providus Banks. The development, CBN believes is strategic in strengthening the nation’s financial stability and mitigate potential systemic risks.

Acting Director of Corporate Communications, Hakama Sidi-Ali, made the announcement on Tuesday, explaining that the merger is aimed to bolster financial viability of the two banks.

She said: “The merger is contingent upon financial support from the CBN, which will be instrumental in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders, as well as shareholders.”

The regulatory bank relies on provision of section 42(2) of the CBN Act, 2007 to merge the banks with support from CBN to strengthen the bank’s operational stability.

The CBN further clarified that the situation of Unity Bank PLC and Providus Bank Limited was different from that of the liquidated Heritage bank and assured stakeholders that, it was committed to safeguarding their deposits in the affected banks.