Following the approval of the framework for their business combination by the Central Bank of Nigeria (CBN) a few hours earlier, the management of between Unity Bank Plc and Providus Bank Limited, on Tuesday night described the planned combination as the onset of a new chapter in their shared history “that is filled with promise and potential.”

It is widely believed that the combination, which may actually be an acquisition finally lays to rest the long standing plan to resolve the negative capital of Unity Bank by wooing investors to inject fresh funds.

A joint statement by both banks noted that with the regulatory approval, completion of the planned merger is now subject to final approvals of their respective boards, shareholders and other relevant regulatory authorities.

A statement by Mrs. Hakama Sidi Ali, Acting Director, Corporate Communications Department at the apex bank said the approval of the merger is part of a pivotal financial accommodation, which is contingent upon the financial support from the CBN.

The approval which is in line with the provisions of Section 42 (2) of the CBN Act, 2007, she said, is crucial for the financial health and operational stability of the post-merger organisation, and 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.

While extending gratitude to the CBN for considering the merger which “marks a significant milestone,” the joint statement said completion of the proposed merger is now subject to the final approvals of their respective boards, shareholders, and other relevant regulatory approvals.

The statement also expressed confidence in the combined strength of both institutions that will create a formidable force in the nation’s “banking sector, driving innovation, growth, and prosperity for our customers, employees, and stakeholders.

The proposed merger, it continued, “represents a strategic and complementary union that will leverage the strengths of both banks to create a leading financial institution in the industry with footprints in retail, corporate, commercial, and digital banking.”

The merger, they assured is about combining Unity Bank’s rich over 18-year legacy and robust retail banking network, of over 220 branches nationwide with Providus Bank’s innovative approach to banking.

The combination, it continued, is also about Unity Bank’s strategic niche in the agricultural business, exceptional customer service delivery and a range of financial products, with Providus Bank’s strong digital footprint, innovative products, high quality service culture and strong focus on helping customers grow.

These, it added, will deliver a seamless blend of traditional and modern banking services to customers of the emergent entity who will “benefit from an expanded suite of products and services, greater convenience, and improved access to banking solutions across various channels. The integration of our digital platforms will offer enhanced security, faster transactions, and a more personalized banking experience.”

The partners expressed commitment “to maintaining the highest standards of corporate governance, financial stability, and customer satisfaction,” with their teams of dedicated professionals working “tirelessly to ensure a smooth transition and continued tradition of excellence in all our operations.”

Unity Bank emerged from a merger of nine banks after the first banking sector consolidation midwifed by the CBN under Prof. Charles Chukwuma Soludo (now governor of Anambra State) that ended in 2008, they are: Intercity Bank Plc, First Interstate Bank Plc, Tropical Commercial Bank Plc, Pacific Bank Limited, Centre-Point Bank Plc, Societe Bancaire Limited, NNB International Bank Plc, Bank of the North Ltd and New Africa Bank Plc. Providus Bank, on the other hand, opened for business as  United Mortgage Bank Limited, before converting to a commercial banking licence in 2016.

While Providus Bank has 911 staff, Unity Bank, Unity Bank boasts of 237 staff.