The Central Bank of Nigeria (CBN) announced on Tuesday the approval of significant financial support to facilitate the proposed merger between Unity Bank Plc and Providus Bank Limited. In a statement issued by its acting Director of Corporate Communications, Hakama Sidi-Ali, the CBN emphasized that this move aims to enhance the stability of the country’s financial system and mitigate 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,” the statement read.

The CBN clarified that its action is in accordance with the provisions of Section 42 (2) of the CBN Act, 2007. This financial accommodation is deemed crucial for the financial health and operational stability of the post-merger organization.

The statement further highlighted that no Nigerian bank currently faces a situation as critical as that of Heritage Bank, which was recently liquidated.

The CBN reaffirmed its commitment to protecting depositors' interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.