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Why Heritage Bank’s licence was revoked — CBN reveals

Why Heritage Bank’s licence was revoked

The Central Bank of Nigeria (CBN) announced yesterday that it has revoked Heritage Bank’s operating licence due to the bank’s inability to improve its financial status. The Nigeria Deposit Insurance Corporation (NDIC) has started the bank’s liquidation process and will compensate depositors with up to N5 million each.

Hakama Sidi Ali, Acting Director of Corporate Communications at CBN, stated that the revocation was necessary to maintain financial stability. He explained that despite numerous supervisory measures by the CBN, Heritage Bank’s financial performance did not improve, posing a threat to the stability of the financial system.

Ali highlighted that the decision aligns with the CBN’s mandate to uphold a sound financial system in Nigeria and is executed under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020. The NDIC has been appointed as the liquidator to manage the process.

In a related statement, Bashir Nuhu, Director of Communication & Public Affairs at NDIC, confirmed that the corporation has started verifying and paying insured deposits to the bank’s customers. Depositors with accounts in other banks will receive up to N5 million using their Bank Verification Number (BVN), while those with funds exceeding this amount will receive liquidation dividends once the bank’s assets are realized and debts recovered.

Nuhu advised depositors without alternate bank accounts to visit the nearest Heritage Bank branch with proof of account ownership and valid identification for verification and payment. Alternatively, they can submit their claims online via the NDIC’s website.

Creditors are also instructed to file their claims either in person at bank branches or through the online platform, with payments commencing after all depositors have been settled. Debtors are urged to contact the NDIC’s Asset Management Department to arrange for loan repayments.

The NDIC reassured the public of its dedication to safeguarding depositors’ funds and emphasized that the banking system remains secure. Depositors have been prompted to continue their banking activities with without fear.

This Article is Fact-Checked. See Policy.

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