The Central Bank of Nigeria (CBN) has approved a N700 billion financial package to support the merger between Unity Bank Plc and Providus Bank Limited.
This bailout, announced in a document seen by Daily Trust, includes a 20-year term loan aimed at ensuring the stability of the newly merged bank.
The financial package also covers Unity Bank’s existing obligations totaling N303.7 billion, including payments to First Bank of Nigeria, the CBN’s Anchor Borrowers Programme, and NIRSAL.
The remaining N396.3 billion will be invested in 20-year Federal Government bonds, contributing to the new bank’s Tier 2 capital. Additionally, Unity Bank’s CRR shortfall of N117.90 billion will be waived.
In a related move, the CBN auctioned $876.3 million to 26 banks at a rate of N1,495 per dollar to ease pressure on the naira.
The CBN’s gross reserves increased to $36.79 billion by the end of July 2024, providing the bank with more resources to stabilize the naira, which has weakened significantly over the past year.