The Central Bank of Nigeria (CBN) has announced the immediate revocation of the licence of Heritage Bank Plc, citing financial instability as the primary cause.
In a statement issued on Monday, Hakama Sidi Ali, Acting Director of Corporate Communication at the CBN, explained that the bank’s persistent breach of Section 12 (1) of the Banks and Other Financial Institutions Act (BOFIA) 2020 necessitated this drastic measure.
“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,” Ali stated.
This decision follows a prolonged period of CBN engagement with Heritage Bank, during which various supervisory steps were prescribed to halt its financial decline.
Despite these efforts, the bank continued to deteriorate without any reasonable prospects of recovery, prompting the CBN to take the next necessary step of revoking its licence.
“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,” said Mrs. Halima, further reinforcing the CBN’s dedication to maintaining public confidence in the Nigerian banking system.
In line with Section 12 (2) of BOFIA 2020, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of Heritage Bank.
“We wish to assure the public that the Nigerian financial system remains on a solid footing,” Halima added, emphasizing that the CBN’s actions are aimed at safeguarding the integrity of the financial system and ensuring its continued robustness.
