CBN approves financial support for Unity, Providus banks merger

The Central Bank of Nigeria (CBN) has granted approval for a pivotal financial accommodation to support the proposed merger between Unity Bank Plc and Providus Bank Limited.

This strategic move, according to the apex bank, 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 ( though not stated).

The fund will be instrumental in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders.

A statement signed by Hakama Sidi Ali (Mrs.) Ag. Director, Corporate Communications CBN noted that this arrangement is crucial for the financial health and operational stability of the post-merger organization.

According to the CBN, 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.

“Furthermore, 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 CBN remains committed to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.

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

In another statement signed by the Management of Providus Bank Ltd and Unity Bank Plc, the lenders said they are pleased to announce the merger, marking a significant milestone in the evolution of the respective institutions.

According to them, this merger 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.

“Unity Bank Plc, with its rich legacy of over 18 years, has established a robust retail banking network, comprising more than 220 branches nationwide. With a strategic niche in the agricultural business, our commitment to delivering exceptional customer service and a comprehensive range of financial products has earned us the trust and loyalty of millions of customers.

“Providus Bank Limited, on the other hand, is renowned for its innovative approach to banking, boasting a strong digital footprint, innovative products, high quality service culture and strong focus on helping customers grow.

“As a fast-growing new-generation bank, Providus Bank has consistently pushed the boundaries of technology to deliver cutting-edge financial solutions that cater to the evolving needs of modern consumers, “ the statement noted.

The combination they said, is driven by a shared vision to provide an unparalleled banking experience to customers.

“By combining Unity Bank’s extensive branch network and deep-rooted customer relationships with Providus’s digital prowess and innovative spirit, we aim to deliver a seamless blend of traditional and modern banking services.

“Our customers 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.

“As we embark on this journey together, we remain committed to maintaining the highest standards of corporate governance, financial stability, and customer satisfaction. Our united team of dedicated professionals will work tirelessly to ensure a smooth transition and continued tradition of excellence in all our operations, “ the statement read in part.

This combination signifies the beginning of a new chapter in the shared history of both institutions, one that is filled with promise and potential.

“We are confident that the combined strength of both entities will create a formidable force in the banking sector, driving innovation, growth, and prosperity for our customers, employees, and stakeholders.

“We extend our heartfelt gratitude to the Central Bank of Nigeria for their consideration and approval and to our customers, employees, and partners for their unwavering support.

“Together, we are poised to achieve greater heights and redefine the future of banking in Nigeria, “ the statement further clarified.

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