The Central Bank of Nigeria (CBN), has approved the merger of Providus Bank and Unity Bank.

The apex bank, in a statement signed by the acting Director, Corporate Communications, Hakama Sidi, on Tuesday, said the action is in accordance with the provisions of Section 42 (2) of the CBN Act, 2007.

The development signals the first merger to be approved following a mandate by the apex bank to increase its minimum capital base

The apex bank also announced approval of 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.

The statement read, “The Central Bank of Nigeria 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.

“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. It is unequivocal to state that the CBN’s 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.”