The Central Bank of Nigeria (CBN) has announced the revocation of Heritage Bank’s banking license. According to Mrs. Hakama Sidi Ali, the Acting Director of Corporate Communications, this decision was made in line with the CBN’s mandate to uphold a stable financial system in Nigeria.
She said: “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 Act (BOFIA) 2020, hereby revokes the licence of Heritage Bank Plc with immediate effect.”
She further explained that this action was necessary due to the bank’s violation of Section 12 (1) of BOFIA, 2020. The CBN emphasized that despite engaging with the bank and providing various supervisory measures to address its declining financial performance, the Board and Management failed to make significant improvements, posing a threat to financial stability.
Ali underscored the CBN’s commitment to maintaining a robust financial sector and ensuring compliance with regulatory standards.
“Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby making the revocation of the license the next necessary step.
“Consequently, the CBN has taken this action to strengthen public confidence in the banking system and ensure that the soundness of our financial system is not impaired.
“The Nigeria Deposit Insurance Corporation (NDIC) is hereby appointed as the Liquidator of the bank following 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.”
