The Central Bank of Nigeria (CBN) has revoked Heritage Bank Plc’s licence, effective immediately, due to poor financial performance.
Regulatory Action
This decision aligns with the CBN’s mandate to maintain a sound financial system in Nigeria. The revocation was executed under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020. The CBN cited Heritage Bank’s breach of Section 12 (1) of BOFIA, 2020, as the primary reason for this action.
Financial Stability Concerns
The CBN explained that Heritage Bank’s Board and Management failed to improve its financial performance, posing a threat to financial stability. Despite various supervisory interventions by the CBN to address the bank’s decline, there was no substantial improvement.
Official Statement
In a statement, the CBN said, “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. Consequently, the CBN has taken this action to strengthen public confidence in the banking system and ensure that the soundness of our financial system is not impaired.”
Appointment of Liquidator
Following the licence revocation, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of Heritage Bank, under Section 12 (2) of BOFIA, 2020. The CBN reassured the public that Nigeria’s financial system remains solid and secure.
The CBN emphasized its dedication to ensuring the safety and soundness of the 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.
