Breaking: CBN revokes Heritage Bank’s licence

The Central Bank of Nigeria (CBN) has revoked the banking license of Heritage Bank Plc. 

In a statement signed by Ag. Director, Corporate Communications, Hakama Sidi Ali (Mrs), the action by the Apex Bank follows the continuous breach of the Banks and Other Financial Institution Act (BOFIA) 2020. 

The regulator explained that over time, the Heritage Bank’s management has not been able to improve it’s financial capacity.

“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.

“This action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020. The Board and Management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes 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 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 in accordance with Section 12 (2) of BOFIA, 2020,” the statement read. 

The regulator therefore assured the banking public 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,” it added.