The Central Bank of Nigeria (CBN) has revoked the operating license of Heritage Bank. This decision was announced by the Acting Director of Corporate Communications at CBN, Hakama Sidi Ali, through an official statement.
According to the CBN, the revocation aligns with its mandate to ensure a stable financial system in Nigeria, as stipulated under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020. The revocation takes immediate effect.
The CBN cited Heritage Bank’s violation of Section 12 (1) of BOFIA 2020 as the primary reason for this action. The statement highlighted that the bank’s Board and Management had failed to enhance the bank’s financial performance, posing a significant risk to financial stability.
The decision follows extensive engagement by the CBN with Heritage Bank, during which various supervisory measures were recommended to halt the bank’s financial decline. Despite these efforts, the bank continued to deteriorate with no viable prospects for recovery, prompting the CBN to take this decisive step.
The CBN emphasized that this move is aimed at bolstering public confidence in the banking sector and maintaining the integrity of the financial system. To manage the liquidation process, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator, in accordance with Section 12 (2) of BOFIA 2020.
The CBN reassured the public that the Nigerian financial system remains robust, and the revocation of Heritage Bank’s license underscores its ongoing commitment to safeguarding the soundness and safety of the country’s financial system.
