ABUJA, Nigeria — The Central Bank of Nigeria, CBN, has announced the immediate revocation of Heritage Bank Plc’s operating license.
This decisive action, authorised under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020, aims to maintain a stable and healthy financial system.
In a statement released by Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN, the revocation was attributed to the bank’s persistent failure to comply with regulatory requirements and improve its financial performance, thus, posing a significant risk to the country’s financial stability.
“The bank’s Board and Management failed to improve its financial performance, posing a risk to the financial stability of the country. Despite various supervisory measures taken by the CBN to help the bank recover, Heritage Bank continued to struggle without any reasonable prospects of recovery,” the CBN’s statement read.
The decision to revoke the license underscores the CBN’s commitment to reinforcing public confidence in the banking sector and ensuring the integrity and soundness of Nigeria’s financial system are not compromised.
To manage the liquidation process and protect depositors, the CBN has appointed the Nigeria Deposit Insurance Corporation (NDIC) as the Liquidator of Heritage Bank, as specified in Section 12 (2) of BOFIA 2020.
“The CBN further said it took the action to strengthen public confidence in the banking system and ensure that the soundness of the financial system is not impaired,” the statement added.
The CBN reassured the public that Nigeria’s financial system remains robust and secure, despite the challenges faced by Heritage Bank.
The central bank’s proactive measures are aimed at ensuring that such issues do not destabilize the broader financial sector.
The revocation follows a series of supervisory interventions by the CBN aimed at assisting Heritage Bank in overcoming its financial difficulties.
However, the bank’s continued poor performance and lack of recovery prospects ultimately led to this regulatory action.
As the NDIC takes over the liquidation process, depositors and other stakeholders are expected to receive timely information and assistance to mitigate any potential disruptions caused by the bank’s closure.
The CBN’s intervention highlights its ongoing efforts to uphold the stability and reliability of Nigeria’s banking system, ensuring that financial institutions operate within the established legal and regulatory frameworks to protect the interests of the public.
