BREAKING: CBN revokes Heritage Bank license

By Abdulsalam Abdulla

The Central Bank of Nigeria (CBN) has announced the revocation of Heritage Bank’s operating license.

In a statement issued by the Acting Director of Corporate Communications, Hakama Sidi Ali, the CBN outlined the reasons behind this decisive action.

“The Central Bank of Nigeria, CBN, in accordance with its mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020, hereby revokes the licence of Heritage Bank Plc with immediate effect,” the statement read.

“This action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020,” it continued. “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.”

The CBN revealed that despite various supervisory steps prescribed to curb the decline, the bank’s condition continued to worsen. “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,” the statement said.

To maintain public confidence and ensure the soundness of the financial system, 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 action we are taking today reflects our continued commitment to take all necessary steps to ensure the safety and soundness of our financial system,” Ali concluded.

This action underscores the CBN’s commitment to maintaining stability within the Nigerian banking sector, ensuring that financial institutions adhere to regulatory standards, and protecting depositors’ interests.