The Central Bank of Nigeria (CBN) has consented to the merger between Providus Bank and Unity Bank.

This was made known in a statement signed by the acting Director, Corporate Communications, Hakama Sidi, on Tuesday, August 6, 2024.

According to the apex bank, its action is in accordance with the provisions of Section 42 (2) of the CBN Act, 2007.

Reports indicate that Providus Bank Limited has sought to acquire a majority stake in Unity Bank Plc for some time.

The deal however, could not pull through previously, but now with CBN support, it is now set to go through. This would aid the bank to work towards meeting the new capital base requirements.

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.

"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.”