The Central Bank of Nigeria (CBN) has decided to revoke the license of Heritage Bank Plc, effective immediately. The CBN took this action due to the bank’s violation of Section 12 (1) of the Banks and Other Financial Act (BOFIA), 2020.
According to the CBN, the board and management of Heritage Bank have failed to improve the bank’s financial performance, which poses a threat to the stability of the financial system. In line with its mandate to promote a sound financial system in Nigeria and its powers under BOFIA 2020, the CBN has withdrawn the bank’s operational license.
Hakama Ali, the CBN’s spokesperson, stated that the apex bank had engaged with Heritage Bank and prescribed various supervisory measures to address the decline. However, the bank has continued to struggle without reasonable prospects of recovery, necessitating the revocation of its license.
The CBN emphasized that the decision to revoke the license is aimed at strengthening public confidence in the banking system and ensuring the soundness of the financial system. The Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the Liquidator of the bank, in accordance with Section 12 (2) of BOFIA, 2020.
The Central Bank Of Nigeria reassured the public that the Nigerian financial system remains strong and stable. The action taken reflects the CBN’s commitment to safeguarding the safety and soundness of the financial system.
This decision by the Central Bank Of Nigeria is expected to have significant implications for Heritage Bank and the wider banking industry in Nigeria.
