The Central Bank of Nigeria (CBN) has announced the revocation of Heritage Bank’s license with immediate effect, citing breaches of Section 12 (1) of the Banks and Other Financial Institutions Act (BOFIA) 2020.
The CBN stated that the decision was made due to Heritage Bank’s failure to improve its financial performance, which was deemed a threat to financial stability.
In a statement issued by the CBN’s acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, it was emphasized that the revocation was carried out in line with the CBN’s mandate to uphold a sound financial system in Nigeria.
“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,” the statement read.
The CBN had engaged with the bank over a period, prescribing various supervisory steps to address the decline. However, as the bank’s prospects of recovery remained bleak, the revocation of its license was deemed necessary.
As per Section 12 (2) of BOFIA 2020, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of Heritage Bank.
The CBN reassured the public of the stability of the Nigerian financial system, stating, “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.”
