Central Bank of Nigeria (CBN) has taken decisive action against Heritage Bank Plc, revoking its licence effective immediately.
Gatekeepers News reports that the move comes after the bank failed to demonstrate significant improvement in its financial performance.
In a statement released on Monday, CBN’s Acting Director of Corporate Communications, Hakama Ali, confirmed the revocation.
The apex bank exercised its powers under section 12 of the Banks and Other Financial Act (BOFIA) 2020 to promote a sound financial system in Nigeria.
“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 said Heritage Bank has not improved and “has no reasonable prospects of recovery”, thereby making the revocation of the licence 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 further statement reads.
“The Nigeria Deposit Insurance Corporation (NDIC) is hereby 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 apex bank noted that the development reflects its commitment to maintaining strict regulatory standards and ensuring the stability of the country’s financial sector.
