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CBN revokes Heritage Bank license

By Stanley Onyeka, Lagos

The Central Bank of Nigeria (CBN) has announced the revocation of the license of Heritage Bank Plc with immediate effect.

CBNsaid the decision is to maintain a stable and healthy financial system as authorised under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020.

A statement from the Acting Director, Corporate Communications, CBN, Mrs. Hakama Ali, said the revocation was executed after Heritage Bank breached Section 12 (1) of BOFIA 2020.

The statement reads in part: “The bank’s Board and Management failed to improve its financial performance, posing a risk to the financial stability of the country.

“Despite various supervisory measures taken by the CBN to help the bank recover, Heritage Bank continued to struggle without any reasonable prospects of recovery.”

To ensure public confidence and integrity of the financial system, the CBN has appointed the Nigeria Deposit Insurance Corporation (NDIC), as the Liquidator of Heritage Bank as stipulated in Section 12 (2) of BOFIA 2020.

The statement added, “We wish to assure the public that the Nigerian financial system remains on a solid
footing. The action we are taking today reflects our continued commitment to take all
necessary steps to ensure the safety and soundness of our financial system.”

Despite various supervisory measures taken by the CBN to help the bank recover, Heritage Bank continued to struggle without any reasonable prospects of recovery.

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