The Central Bank of Nigeria (CBN) has revoked the banking license of Heritage Bank PLC, effective immediately.
According to a press release issued by the CBN, the decision was made pursuant to Section 12 of the Banks and Other Financial Act (BOFIA) 2020, due to the bank’s breach of the provision. Despite efforts by the CBN to engage with the bank and prescribe supervisory measures to address its declining financial performance, Heritage Bank failed to show reasonable prospects of recovery.
The CBN stated that the revocation of the license was necessary to prevent further threats to the financial stability of the country. The Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the Liquidator of the bank, in accordance with Section 12 (2) of BOFIA, 2020.
In a statement, the Ag. Director of Corporate Communications at CBN, Hakama Sidi Ali (Mrs.), assured the public that the Nigerian financial system remains solid and that the action taken against Heritage Bank demonstrates the CBN’s commitment to ensuring the safety and soundness of the financial system.