To ensure the stability of Nigerias financial system, the Central Bank of Nigeria (CBN) has provided a facility to support the merger between Providus and Unity Bank, a bank that recorded losses of ?38.8 billion during the first half of 2023.
While the CBN has not disclosed how much it provided in support, a source close to the situation told TechCabal that the amount was ?700 billion.
According to a letter from Unity Banks managing director to the CBN seen by TechCabal, on July 22, the bank requested merger approval and financial support.
In that letter, it asked for a loan priced at an interest rate of MPR minus 11%, subject to a minimum of 6%. Beginning in the sixth year, the new financial entity will recommence repayment in 15 equal installments until maturity.
A spokesperson for Unity Bank declined to comment.
