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CBN Approves Providus Bank Takeover of Unity Bank

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The Central Bank of Nigeria (CBN) has announced its approval for a landmark financial takeover of Unity Bank Plc by Providus Bank Limited. Under the terms of this pivotal agreement, Providus Bank will hold an 80 percent stake in the newly formed entity, with Unity Bank retaining a 20 percent ownership.

The takeover is supported by a substantial financial accommodation from the CBN, including a 20-year term loan valued at N700 billion. The loan, priced at an interest rate of Monetary Policy Rate (MPR) minus 11 percent, with a minimum of six percent, aims to provide significant financial backing to the merged entity. Payments for the loan will be made semi-annually, with a five-year principal moratorium and subsequent repayment commencing in the sixth year through 15 equal installments until maturity.

The CBN’s approval letter, dated July 22, 2024, and signed by Dr. Adetona Adedeji, Acting Director of Banking Supervision, details that Unity Bank’s existing obligations amounting to N303.7 billion will be deducted from the N700 billion financial accommodation. These obligations include N92 billion owed to First Bank of Nigeria, N51.7 billion in CBN financial accommodations, N25 billion related to the Anchor Borrowers Programme, and N135 billion for NIRSAL. Additionally, the balance of N396.30 billion will be invested in a 20-year Federal Government of Nigeria (FGN) bond, qualifying as Tier 2 capital and a component of shareholders’ funds.

The CBN has also waived Unity Bank’s current Cash Reserve Ratio (CRR) shortfall of N117.90 billion. Providus Bank’s CRR balance post-merger will be used as the opening balance for the new entity. This strategic merger is designed to enhance the stability of Nigeria’s financial system and mitigate potential systemic risks.

In a statement by Mrs. Hakama Sidi Ali, Acting Director of the CBN’s Corporate Communications Department, the apex bank emphasized that the merger, contingent upon the CBN’s financial support, is crucial for the operational stability and financial health of the post-merger institution. Ali confirmed that this decision aligns with Section 42 (2) of the CBN Act, 2007, and reflects the CBN’s commitment to safeguarding depositors’ interests and maintaining banking sector stability.

Providus Bank and Unity Bank have expressed their satisfaction with the CBN’s approval, viewing the merger as a strategic opportunity to leverage their respective strengths. Unity Bank, with its extensive network of over 220 branches and a focus on agricultural finance, will combine its robust retail banking presence with Providus Bank’s innovative digital banking solutions. Providus Bank, known for its technological advancements and high-quality service, aims to enhance the banking experience by integrating its digital capabilities with Unity Bank’s traditional banking strengths.

The merger is expected to provide customers with a broader range of products and services, greater convenience, and improved access to banking solutions. The integration will also enhance security, speed up transactions, and offer a more personalized banking experience.

Both banks have committed to maintaining high standards of corporate governance and financial stability throughout the merger process. They anticipate that this union will mark the beginning of a new era in the banking sector, characterized by innovation, growth, and enhanced customer satisfaction.

Providus Bank has demonstrated strong financial performance, with a notable increase in Profit After Tax (PAT) to N44.87 billion in 2023, up from N8.03 billion in 2022. Its assets have grown to N1.75 trillion, and the bank has reduced its Non-Performing Loans (NPLs) to 2.5 percent. Despite these positive metrics, industry experts, including Dr. Ike Chioke, Chief Executive of Afrinvest Group, have highlighted potential challenges related to new capital raises and their impact on achieving the $1 trillion economy target.

The proposed merger is subject to final approvals from the boards, shareholders, and relevant regulatory bodies.

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Abuja Reports

Atoyebi Adewumi Wins 4th National Essay Competition, Beats 2,000 Contestants

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By Samson Adeyanju

Atoyebi Adewumi has emerged winner of the fourth edition of the National Essay Competition, beating more than 2,000 contestants in an intellectual contest aimed at promoting academic excellence, critical thinking and creative writing among young Nigerians.

The competition, which focused on the relevance of taxation to national development, challenged participants to examine the role of tax revenue in financing public services, stimulating economic growth and strengthening the relationship between government and citizens.

The initiative provided a platform for young Nigerians to demonstrate their writing skills, articulate informed perspectives on national issues and contribute ideas towards building a more responsible and progressive society.

Speaking after being declared winner, an elated Adewumi expressed gratitude to the convener, Foluso Sylvanus Ojo, and the organising team for providing young Nigerians with an opportunity to showcase their intellectual abilities.

“I am so glad, very, very glad, to have this privilege of emerging as the winner. I am grateful to the convener and the entire team, as well as everyone who supported this vision,” Adewumi said.

In his remarks, Ojo expressed concern over the tendency to criticise the attitudes and lifestyles of younger generations without providing adequate opportunities to nurture their talents and channel their energies towards productive pursuits.

He called on the government, corporate organisations and nongovernmental organisations to invest more in educational initiatives that promote intellectual excellence, creativity and responsible citizenship.

According to him, sustained investment in academic competitions and youth development programmes would encourage discipline, innovation and a stronger commitment to national development.

Drawing a comparison with the substantial cash prizes awarded in some reality television competitions in Nigeria, Ojo argued that students and intellectually gifted young Nigerians deserved greater recognition, financial support and encouragement.

“I believe the government should support initiatives like this because individuals need supportive hands, especially from the government. When they receive such support, they become more confident and motivated to continue their good work,” he said.

Ojo maintained that society could not continue to complain about the attitudes and lifestyles of young people without deliberately investing in programmes that encourage positive values and productive engagement.

The fourth edition of the competition also underscored the importance of tax awareness among young Nigerians, highlighting how effective taxation, transparency and accountable governance could contribute to improved infrastructure, education, healthcare and other essential public services.

Beyond celebrating the winner, the competition reinforced the need to identify, encourage and empower emerging intellectual talents capable of contributing meaningfully to Nigeria’s development.

Winner of the 5,000,000 naira

Winner of 3,000,000 naira

Winner of 2,000,000

All the participants 

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Abuja Reports

20 Finalists Begin Final Stage of National Essay Competition

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By Samson Adeyanju

Twenty finalists from across Nigeria have begun the final stage of the fourth edition of the National Essay Competition in Abuja, following an orientation session designed to prepare them for the decisive examination.

The finalists arrived in the Federal Capital Territory for a four-day, all-expenses-paid programme featuring the essay examination, institutional tours and opportunities for learning and networking.

The competition, the brainchild of Mr Foluso Ojo, is sponsored by the Nigeria Revenue Service (NRS).

Ahead of the examination, the finalists participated in an orientation session led by Professor Omotosho Borisade of Ekiti State University, who serves as the competition’s umpire.

The session familiarised participants with the competition’s rules and regulations, examination guidelines and assessment criteria, helping them understand the requirements of the final stage.

The essay examination is scheduled to begin today at 9 a.m., after which the finalists are expected to embark on institutional tours around Abuja.

The programme is designed to extend beyond the contest itself, exposing the finalists to new learning opportunities, professional connections and experiences in the nation’s capital.

The competition brings together young Nigerians to demonstrate their writing ability, knowledge, creativity and critical-thinking skills as they compete for the top honours.

With the finalists prepared for the examination, attention now turns to their performance and the eventual emergence of the competition’s champion.

 

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Pastor Ogundipe Decries Lack of Integrity Among Educated Nigerians

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By Samson Adeyanju

Pastor Alex Ogundipe, Chairman of the Governing Board of Christian Heritage International Bible College, Kubwa, Abuja, has expressed concern over the growing number of educated Nigerians who lack the character and integrity required to make meaningful contributions to society.

Ogundipe raised the concern during the matriculation ceremony of the institution’s 60 pioneer students, stressing that academic qualifications without moral discipline and upright character could undermine national development.

According to him, Nigeria has many knowledgeable and academically accomplished individuals whose inability to demonstrate integrity has negatively affected their contributions to their families, workplaces and communities.

“We have too many people in this country who are knowledgeable and wise in their own ways, but they do not have character and integrity. That affects their ability to impact their communities,” he said.

The cleric emphasised that education must go beyond the acquisition of certificates to the development of individuals who demonstrate honesty, accountability, faithfulness and commitment to serving humanity.

He explained that true integrity required consistency in personal conduct, whether at home, in the church, at work or within the larger society.

Ogundipe said the college was established not merely to impart biblical knowledge but to raise men and women whose lifestyles reflect Christian values and whose contributions would positively influence society.

He urged Christian leaders to demonstrate their faith through practical actions rather than mere religious declarations.

Speaking on Nigeria’s future, the cleric encouraged citizens to remain hopeful, pray for the country and contribute meaningfully to national peace, unity and development.

Earlier, the Rector of the institution, Pastor Samson Olukayode Aliyu, challenged the matriculating students to prioritise spiritual maturity and moral discipline alongside academic excellence.

Aliyu warned against examination malpractice, plagiarism, dishonesty and other forms of misconduct, stressing that academic certificates could demonstrate knowledge but could not substitute for good character.

“The Church does not only need gifted people; it needs godly people. We need leaders who will choose integrity over compromise, humility over pride, faithfulness over convenience and service over self-interest,” he declared.

He explained that the college offers six-month certificate programmes in theology and one-year diploma programmes in theology, leadership and prophetic studies.

One of the matriculating students, Akeem Omobolanle, who enrolled in the Diploma in Leadership programme, commended the institution’s approach to biblical education and expressed optimism that the training would strengthen his understanding of the Scriptures and prepare him for greater service in Christian ministry.

The ceremony marked the formal admission of the college’s pioneer students into its academic community.

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