Business a.m.
The Central Bank of Nigeria (CBN) has announced the immediate revocation of Heritage Bank Plc’s banking license.
The CBN, citing Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020, stated that the license revocation was intended to ensure that Nigeria’s banking sector remains stable and healthy, thus safeguarding the interests of depositors, investors, and the economy at large.
A circular signed by Hakama Sidi Ali, the CBN’s acting director, corporate communications, explained that the decision to revoke Heritage Bank Plc’s banking license was based on the bank’s persistent underperformance and its inability to turn around its financial situation, which posed a significant threat to the stability of the Nigerian financial system.
It stated: “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.”
To avoid further erosion of public confidence in the country’s financial sector and safeguard the stability of the system, the CBN said it has appointed the Nigeria Deposit Insurance Corporation (NDIC) as the official liquidator of Heritage Bank.
Reaffirming its dedication to upholding the stability of Nigeria’s financial system, the CBN reassured the public that the banking sector remains on solid footing,adding that the action it is taking reflects its continued commitment to take all
necessary steps to ensure the safety and soundness of Nigeria’s financial system.
