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In a decisive move to protect Nigeria’s financial integrity, the Central Bank of Nigeria (CBN) has revoked the banking license of Heritage Bank PLC. This action, effective immediately, addresses the bank’s ongoing financial difficulties that threaten the stability of the country’s financial sector.
Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN, announced the revocation in a press release on Monday. The decision aligns with the CBN’s mandate to ensure a sound financial system under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
The press release stated, “This action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020. 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.”
Despite various supervisory measures prescribed by the CBN to reverse the decline, Heritage Bank’s financial health continued to deteriorate, leaving no reasonable prospects for recovery. Thus, the CBN deemed the revocation of the license as the next essential step.
The CBN’s decision aims to bolster public confidence in the banking system and ensure the continued soundness of Nigeria’s financial infrastructure.
Following the license revocation, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of Heritage Bank PLC in accordance with Section 12 (2) of BOFIA 2020.
The CBN reassured the public that Nigeria’s financial system remains stable and robust, reiterating its commitment to maintaining the safety and soundness of the financial sector.
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