The Central Bank of Nigeria (CBN) has announced the immediate revocation of Heritage Bank Plc’s banking licence.

This decision stems from Heritage Bank’s ongoing financial struggles, which have posed a threat to the stability of the financial system. Sidi Ali, the Acting Director of the Corporate Communication Department at CBN, shared this news in a statement released on Monday.

Despite various efforts by the CBN to help the bank recover, the management of Heritage Bank failed to turn around its declining financial situation. With no viable prospects for recovery, the CBN decided to take decisive action to safeguard the financial system and maintain public trust.

“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 emphasized.

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 appointment is aimed at ensuring an orderly liquidation process and protecting depositors’ funds.

The public has been reassured that the revocation of Heritage Bank’s licence will not affect the overall health of Nigeria’s financial system. The CBN’s statement clarified that the bank breached Section 12 (1) of BOFIA, 2020, and despite extensive engagement and supervisory steps by the CBN, Heritage Bank continued to decline with no reasonable hope for recovery.

The statement from the CBN read: “The Central Bank of Nigeria (CBN), following its mandate to promote a sound financial system in Nigeria and the exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020, hereby revokes the licence of Heritage Bank Plc with immediate effect.

“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.

“This follows a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline. 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.

“The Nigeria Deposit Insurance Corporation (NDIC) is hereby appointed as the liquidator of the bank under Section 12 (2) of BOFIA, 2020.

“We wish to assure the public that the Nigerian financial system remains on a solid footing. 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.”

This revocation marks a significant move by the CBN to uphold the integrity and stability of Nigeria’s financial landscape, ensuring that the interests of depositors and the broader public are protected.

Read also: