CBN approves financial accommodation for Unity, Providus Bank merger

Value of Nigeria M&A deals to hit $4 billion in 2018

Mergers and acquisitions is a general term that refers to the consolidation of companies or assets. M&A transactions in Nigeria were valued at US$ 1.2 billion in 2016, according to data compiled by McKenzie, and the latter forecasts a 67.8 per cent decline to US$ 716.4 million in 2017.

The Central Bank of Nigeria (CBN) has granted an approval for a financial
accommodation to support the proposed merger between Unity Bank Plc and Providus Bank Limited.

The CBN said in a statement signed by Hakama Sidi Ali, acting director of corporate communications, that the move is designed to bolster the stability of Nigeria’s financial system and avert potential systemic risks.

It said the merger is contingent upon the financial support from the CBN.

“The fund will be instrumental in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders. It is unequivocal to state that the CBN’s action is in accordance with the provisions of Section 42 (2) of the CBN Act, 2007. This arrangement is crucial for the financial health and operational stability of the post-merger organisation.”