The Central Bank of Nigeria (CBN) has announced the immediate revocation of Heritage Bank Plc’s banking license. This decisive action, undertaken to maintain a robust financial system in Nigeria, aligns with the CBN’s mandate and powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020.
The revocation was necessitated by Heritage Bank’s violation of Section 12 (1) of BOFIA 2020. Despite prolonged engagement and various supervisory measures prescribed by the CBN to reverse the bank’s declining financial performance, Heritage Bank has failed to achieve any substantial improvement. The bank’s continued deterioration has posed a significant threat to the stability of the financial system, leaving the CBN with no choice but to revoke its license.
The CBN emphasized that this action aims to bolster public confidence in the Nigerian banking system and ensure the overall soundness and integrity of the financial sector. To manage the ensuing liquidation process, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of Heritage Bank, as stipulated under Section 12 (2) of BOFIA 2020.
In a statement, the CBN assured the public that Nigeria’s financial system remains stable and resilient. The revocation of Heritage Bank’s license underscores the CBN’s unwavering commitment to taking all necessary measures to safeguard the safety and soundness of the country’s financial infrastructure.
