The Central Bank of Nigeria (CBN) has officially revoked the banking licence of Heritage Bank Plc.
This decision, effective immediately, comes in line with the CBN’s mandate to maintain a robust financial system in Nigeria.
According to Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications at CBN, the revocation was necessary due to Heritage Bank’s persistent financial instability and inability to meet regulatory requirements.
Specifically, the bank breached Section 12 (1) of the Banks and Other Financial Institutions Act (BOFIA) 2020.
Despite various supervisory measures prescribed by the CBN to reverse the bank’s decline, Heritage Bank’s financial performance continued to deteriorate without reasonable prospects of recovery.
The CBN engaged with Heritage Bank over a period, prescribing several steps aimed at stabilizing the bank’s financial condition.
After assessing the bank’s inability to recover, the CBN determined that revoking the licence was essential to prevent further financial instability.
Mrs. Ali emphasized that this move aims to strengthen public confidence in the banking sector. To manage the fallout and protect depositors’ interests, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of Heritage Bank, in accordance with Section 12 (2) of BOFIA, 2020.
The CBN has reassured the public that Nigeria’s financial system remains strong and resilient. This action reflects the apex bank’s ongoing dedication to safeguarding the integrity and stability of the financial landscape.
