CBN Approves Merger of Unity Bank and Providus Bank
…To Ensure Financial Stability
By Patience Ikpeme
The Central Bank of Nigeria (CBN) has granted approval for the 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, “contingent upon financial support from the CBN”, will address Unity Bank’s total obligations to the Central Bank and other stakeholders. This intervention aligns with the provisions of Section 42 (2) of the CBN Act, 2007, highlighting the importance of this financial accommodation for the health and stability of the merged entity.
In a statement, the CBN emphasized that this merger is a proactive measure to safeguard the banking sector and ensure the smooth functioning of financial institutions. “The fund will be instrumental in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders. This arrangement is crucial for the financial health and operational stability of the post-merger organisation,” the CBN stated.
Importantly, the CBN reassured the public that no Nigerian bank is currently facing a precarious situation similar to that of Heritage Bank, which was recently liquidated. The Central Bank remains committed to protecting depositors’ interests and maintaining confidence in the banking system through strategic interventions and proactive measures.
In a joint press statement, the managements of Providus Bank Limited and Unity Bank Plc described the merger as a strategic and complementary union that will leverage the strengths of both banks to create a leading financial institution. “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,” the statement read.
Unity Bank Plc, with its legacy of over 18 years, has established a robust retail banking network comprising more than 220 branches nationwide. The bank has carved out a strategic niche in the agricultural sector, earning the trust and loyalty of millions of customers through exceptional customer service and a comprehensive range of financial products.
“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,” Unity Bank’s management stated.
Providus Bank Limited is known for its innovative approach to banking, boasting a strong digital footprint and a focus on delivering high-quality service. As a fast-growing new-generation bank, Providus has consistently pushed the boundaries of technology to offer cutting-edge financial solutions tailored to modern consumers’ needs.
“Providus Bank Limited is renowned for its innovative approach to banking, boasting a strong digital footprint, innovative products, high-quality service culture, and a 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,” stated the management of Providus Bank.
The merger aims to combine Unity Bank’s extensive branch network and deep-rooted customer relationships with Providus Bank’s digital prowess and innovative spirit. This integration promises to offer an unparalleled banking experience, providing customers with an expanded suite of products and services, greater convenience, and improved access to banking solutions across various channels.
“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,” the joint statement noted.
As Unity Bank and Providus Bank embark on this journey together, they remain committed to maintaining the highest standards of corporate governance, financial stability, and customer satisfaction. The combined team of dedicated professionals from both banks will work tirelessly to ensure a smooth transition and uphold the tradition of excellence in all operations.
“This combination signifies the beginning of a new chapter in our shared history, 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,” the statement read.
The managements of both banks extended their gratitude to the Central Bank of Nigeria for its approval and to their customers, employees, and partners for their unwavering support. “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,” the statement concluded.
This merger marks the beginning of a new era in the Nigerian banking industry, giving the ongoing recapitalization exercise.
