The Central Bank of Nigeria has taken the decisive step of revoking the banking license of Heritage Bank Plc, effective immediately, citing concerns over the bank’s persistently poor financial performance, which posed a threat to financial stability.
Sidi Ali, the Acting Director of the Corporate Communication Department at the apex bank, disclosed this development in a statement released on Monday. Despite various supervisory measures taken by the regulator, Heritage Bank’s management failed to reverse the decline in its financial status, leaving the Central Bank with no choice but to intervene to safeguard the integrity of the financial system and maintain public trust.
“The Nigerian financial system remains robust, and we are unwavering in our commitment to uphold its safety and soundness,” the statement affirmed.
In line with the Banks and Other Financial Act 2020, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of Heritage Bank. This move underscores the CBN’s determination to ensure the stability of the financial sector and protect the interests of depositors. Importantly, the public has been reassured that the revocation of Heritage Bank’s license will not compromise the overall health of the financial system.
“The Central Bank of Nigeria, exercising its mandate to uphold a sound financial system in Nigeria and pursuant to its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020, has decided to revoke the license of Heritage Bank Plc with immediate effect,” the statement declared.
“This decision is prompted by the bank’s violation of Section 12 (1) of BOFIA 2020, as its board and management failed to improve the bank’s financial performance, thereby posing a threat to financial stability.”
The CBN had engaged with Heritage Bank over a period, prescribing various supervisory measures to address its deteriorating financial situation. However, with no tangible signs of improvement, the revocation of the bank’s license was deemed necessary to reinforce public confidence in the banking system and maintain its resilience.
“We wish to assure the public that the Nigerian financial system remains robust. Our actions today reflect our steadfast commitment to take all necessary measures to uphold the safety and stability of our financial system,” the statement concluded.
