The Central Bank of Nigeria (CBN) has announced the revocation of Heritage Bank’s operating licence.
This decision was revealed in a statement by the Acting Director of Corporate Communications, CBN, Hakama Sidi Ali.
Ali stated: “The Central Bank of Nigeria, in accordance with its mandate to promote a sound financial system in Nigeria and exercising its powers under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020, hereby revokes the licence of Heritage Bank Plc with immediate effect.”
She explained that the revocation was necessary due to the bank’s violation of Section 12 (1) of BOFIA, 2020. The bank’s management had failed to improve its financial performance, posing a threat to financial stability.
“This follows a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline. Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby making the revocation of the licence the next necessary step.”
Ali assured the public that this action is aimed at maintaining confidence in the banking system and ensuring the overall soundness of Nigeria’s financial sector. The Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of the bank in line with Section 12 (2) of BOFIA, 2020.
“We wish to assure the public that the Nigerian financial system remains on a solid footing. The action we are taking today reflects our continued commitment to take all necessary steps to ensure the safety and soundness of our financial system,” Ali concluded.
