The Central Bank of Nigeria (CBN), on Tuesday gave its blessing for the proposed merger between Unity Bank Plc and Providus Bank Limited, in what it said in a statement by the Acting Director, Corporate communications, Mrs. Hakama Sidi Ali, is part of a pivotal financial accommodation.

The merger, which is contingent upon the financial support from the CBN, she added, “is designed to bolster the stability of Nigeria’s financial system and avert potential systemic risks.

“The fund will be instrumental in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders,” she said, stressing unequivocally “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.”

The CBN emphasised “that no Nigerian bank currently faces a precarious situation comparable to that of Heritage Bank, which was recently liquidated,” expressed its commitment to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.

The decision, the CBN continued, “underscores its dedication to maintaining financial stability and promoting confidence in the banking system during this transformative period.”