The Central Bank of Nigeria (CBN) has approved Providus Bank Limited’s acquisition of Unity Bank Plc, with an 80-20 asset ownership split. The takeover is supported by a N700 billion loan from the CBN, structured as a 20-year term loan at an interest rate of MPR minus 11 percent, subject to a minimum of six percent. The loan will be repaid semi-annually, with a principal moratorium of five years.
The CBN’s approval is contingent upon the financial support, which will address Unity Bank’s total obligations to the central bank and other stakeholders. The merger aims to bolster the stability of the country’s financial system and avert potential systemic risks.
Providus Bank and Unity Bank have welcomed the CBN’s approval, stating that the merger will create a leading financial institution in the industry, leveraging the strengths of both banks to deliver exceptional customer service and a comprehensive range of financial products. The combined entity will have an expanded suite of products and services, greater convenience, and improved access to banking solutions across various channels.
The completion of the proposed merger is subject to final approvals from the respective boards, shareholders, and relevant regulatory authorities.
