Unity Bank Plc (NGX: UNITYBNK) has confirmed the Central Bank of Nigeria’s (CBN) approval of a proposed merger between it and Providus Bank Limited.
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In a regulatory filing on Wednesday, the bank informed the NGX, its Shareholders and other Stakeholders of the approval in line with the provision of Rule 17.3 of the Nigerian Exchange Limited.
The formal regulatory approval will necessitate further actions towards a formal completion process of the merger.
Tier 3 Unity Bank Plc communicated its readiness to comply with the CBN new recapitalization framework for Banks in Nigeria.
Investogist reported in March 2024 of an upward review of the minimum capital requirements for commercial, merchant and non-interest banks in Nigeria.
All existing banks are required to meet the minimum capital requirement within a period of 24 months commencing from April 1, 2024 and terminating on March 31, 2026.
For commercial banks with international authorisation, the minimum capital is now ₦500 billion. Commercial banks with national will require a minimum capital of ₦200 billion, while those with regional authorization will require ₦50 billion.
Nairametrics reported that the Central Bank approved a financial package worth ₦700 billion to support the proposed merger between Unity Bank Plc and Providus Bank Limited, citing a letter seen by its correspondents.
The bailout according to the letter which also contained details terms and structure of the financial accommodation, is aimed at strengthening the stability of Nigeria’s financial system. The letter, addressed to the Managing Director of Unity Bank, outlines a 20-year term loan designed to ensure the operational stability of the merged entity.
CBN in a press release on Tuesday approved a financial accommodation to support the proposed merger between Unity Bank Plc and Providus Bank Limited.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur