The Central Bank of Nigeria (CBN) has revoked Heritage Bank Plc’s banking license with immediate effect.
In a statement released on Monday, Hakama Ali, the Acting Director of Corporate Communications for the CBN, explained that this decision aligns with the bank’s mandate to maintain a sound financial system in Nigeria. The move was executed under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
Ali cited the bank’s violation of Section 12 (1) of BOFIA, 2020, noting that the Board and Management of Heritage Bank had failed to improve its financial performance. This persistent underperformance posed a threat to the stability of the financial system.
“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,” the statement read.
To maintain public confidence and ensure the integrity of the financial system, the CBN has appointed the Nigeria Deposit Insurance Corporation (NDIC) as the liquidator of Heritage Bank under Section 12 (2) of BOFIA, 2020.
“We wish to assure the public that the Nigerian financial system remains on 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,” the CBN’s statement concluded.