The Central Bank of Nigeria (CBN) has announced a critical financial accommodation to facilitate the proposed merger between Unity Bank Plc and Providus Bank Limited. This move aims to strengthen the nation’s financial system and mitigate potential systemic risks, according to a statement released by Hakama Sidi-Ali, the CBN’s acting Director of Corporate Communications.

“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.

Sidi-Ali emphasized that the CBN’s intervention is grounded in Section 42 (2) of the CBN Act, 2007, highlighting its importance for the financial health and operational stability of the merged entity.

“This arrangement is crucial for the financial health and operational stability of the post-merger organisation. It is important to emphasize that no Nigerian bank currently faces a precarious situation comparable to that of Heritage Bank, which was recently liquidated,” the statement added.

The CBN reiterated its commitment to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.