The Central Bank of Nigeria (CBN) has revoked the operating licence of Heritage Bank Plc.
This decision was announced by the Acting Director of Corporate Communications, Hakama Sidi Ali, in a statement released on Saturday.
“The Central Bank of Nigeria, CBN, in accordance with its mandate to promote a sound financial system in Nigeria and in exercise of 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,” Ali stated.
This decisive action was taken due to Heritage Bank’s breach of Section 12 (1) of BOFIA, 2020. Despite multiple interventions and supervisory measures prescribed by the CBN to address the bank’s declining financial performance, the Board and Management of Heritage Bank have been unable to achieve the necessary improvements.
“The bank has continued to suffer financial instability and has no reasonable prospects of recovery, thereby making the revocation of the licence the next necessary step,” Ali explained.
The CBN emphasized that this move is aimed at strengthening public confidence in the Nigerian banking system and ensuring that the overall soundness of the financial sector is not compromised.
“The Nigeria Deposit Insurance Corporation (NDIC) is hereby appointed as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020,” the statement added.
The CBN reassured the public of the resilience and stability of the Nigerian financial system. “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.
