BREAKING: CBN Revokes Heritage Bank’s License Over Financial Stability Concerns

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

In a statement released on Monday, Hakama Ali, the Acting Director of Corporate Communications at the CBN, explained that this action is in line with the CBN’s mandate to maintain a sound financial system in Nigeria and is executed under the authority granted by Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020.

Ali stated that Heritage Bank had violated Section 12 (1) of BOFIA, 2020. He further noted that the bank's Board and Management had failed to improve its financial performance, posing a threat to the stability of Nigeria's financial system.

The CBN Statement

It said “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.”

Consequently, the CBN said it took action to strengthen public confidence in the banking system, and ensure that the soundness of the financial system is not impaired.

To this effect, the CBN has appointed the Nigeria Deposit Insurance Corporation (NDIC) as the liquidator of the bank under 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,” the statement added.