The Central Bank of Nigeria (CBN) has revoked the banking license of Heritage Bank Plc, effective immediately.
The decision comes after the bank’s continued poor financial performance, which poses a threat to financial stability, according to a statement released by Sidi Ali, the Acting Director of Corporate Communication.
The CBN noted that despite various supervisory measures, the management of Heritage Bank failed to reverse its financial decline, leaving no reasonable prospects for recovery.
This action is intended to protect the financial system and maintain public confidence.
“The Nigerian financial system remains on a solid footing. We are committed to ensuring the safety and soundness of our financial system, and this action reflects that commitment,” the statement read in part.
Following the revocation, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of Heritage Bank, in accordance with the Banks and Other Financial Act (BOFIA) 2020.
This measure aims to maintain the stability of the financial system and protect depositors’ funds. The CBN assured the public that this move will not affect the overall health of the financial system.
The statement further highlighted, “The CBN, in line with its mandate to promote a sound financial system and exercising its powers under Section 12 of BOFIA 2020, hereby revokes the license of Heritage Bank Plc with immediate effect. This decision is due to the bank’s breach of Section 12 (1) of BOFIA 2020, and the inability of its Board and Management to improve its financial performance, which constitutes a threat to financial stability. Despite efforts to intervene, the bank’s condition has not improved, necessitating this step.”
In conclusion, the CBN reiterated its commitment to ensuring the robustness of Nigeria’s financial system, assuring the public of the continued safety and soundness of the sector.
