CBN Approves Merger of Unity and Providus Banks Amid Reassurances of Banking Sector Stability

The Central Bank of Nigeria (CBN) has granted approval for the merger between Unity Bank and Providus Bank, a move aimed at enhancing the stability of Nigeria’s financial system. This decision, announced by the CBN’s acting Director of Corporate Communications, Hakama Sidi-Ali, on Tuesday, is aligned with Section 42 (2) of the CBN Act, 2007.

The CBN’s support for the merger is intended to help Unity Bank meet its obligations and reinforce the overall stability of the banking sector. Sidi-Ali emphasized that this measure is vital for the operational stability of the combined entity.

In a related development, the CBN has issued a statement addressing recent rumors about the health of Nigerian banks. The apex bank assured the public that despite speculative reports suggesting financial instability, Nigerian banks remain secure and sound. The CBN urged citizens to continue their normal banking activities, reassuring them of the safety of their deposits.

This reassurance comes in response to allegations from a report by CBN’s special investigator, Jim Obazee, which suggested former CBN Governor Godwin Emefiele had improperly acquired Union Bank of Nigeria and Keystone Bank. The report recommended government intervention to reverse these transactions, but the CBN stressed that these claims do not reflect the current state of the banking industry.