The Central Bank of Nigeria (CBN) has announced the immediate revocation of the licence of Heritage Bank Plc.
The regulator cited the bank's inability to improve its financial performance as the reason for this decision.
The apex bank made the announcement in a statement issued on Monday, signed by Hakama Ali, its acting director of corporate communications.
The CBN stated that the revocation is in line with its mandate to promote a sound financial system in Nigeria and is exercised under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
“This action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020,” the statement reads.
“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.”
The CBN noted that Heritage Bank has shown no improvement and “has no reasonable prospects of recovery,” thus necessitating the revocation of its licence.
“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 statement continues.
The Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020.
“We wish to assure the public that the Nigerian financial system remains on a solid footing.”
The CBN reiterated that the revocation underscores its continued commitment to taking all necessary measures to ensure the safety and soundness of Nigeria’s financial system.
