The Central Bank of Nigeria (CBN) has officially approved the merger between Providus Bank and Unity Bank, a strategic move aimed at strengthening Nigeria's financial system.
Established in 2016, Providus Bank has been pursuing a majority stake in Unity Bank since last year as part of its expansion plans. Unity Bank has been struggling to meet its minimum capital requirements since 2017 and has recorded significant losses in recent years.
The merger is expected to create a leading financial institution with a strong presence in retail, corporate, commercial, and digital banking. Unity Bank's extensive branch network and customer relationships will be combined with Providus Bank's digital prowess and innovative spirit, offering customers an expanded suite of products and services, greater convenience, and improved access to banking solutions across various channels.
The CBN also provided financial accommodation to support the merger, which is crucial for resolving Unity Bank's total obligations and ensuring the operational stability and financial health of the post-merger entity.
Despite initial reports suggesting an acquisition, the CBN has sanctioned the transaction as a merger.
