The Central Bank of Nigeria (CBN) has announced the immediate revocation of Heritage Bank Plc’s license. This decision was communicated by Hakama Sidi-Ali, the Acting Director of the Corporate Communications Department, on Monday in Abuja.
Sidi-Ali stated that the action aligns with the CBN’s mandate to maintain a sound financial system in Nigeria and is exercised under Section 12 of the Banks and Other Financial Institutions Act (BOFIA). Heritage Bank breached Section 12 (1) of BOFIA, prompting the decision.
“The bank’s Board and Management failed to improve its financial performance, posing a threat to financial stability,” she said. “Despite CBN’s engagement and various supervisory measures, the bank continued to decline with no reasonable prospects of recovery, making the license revocation necessary.”
The CBN’s move aims to bolster public confidence in the banking system and ensure its soundness. The Nigeria Deposit Insurance Corporation (NDIC) is appointed as the bank’s liquidator in accordance with Section 12 (2) of BOFIA, 2020.
“We assure the public that the Nigerian financial system remains robust. Today’s action underscores our commitment to ensuring the safety and soundness of our financial system,” Sidi-Ali concluded.
