The Central Bank of Nigeria (CBN) has officially withdrawn the banking license of Heritage Bank Plc, with immediate effect.This decision was necessitated by the bank’s persistent poor financial performance, which posed a risk to the stability of the financial sector.
In a statement released on Monday, Sidi Ali, the Acting Director of the Corporate Communication Department of the CBN, explained the rationale behind the move.According to the CBN, despite numerous regulatory interventions, the management of Heritage Bank has been unable to reverse the financial decline. With no viable prospects for recovery, the CBN decided to take this step to safeguard the financial system and ensure public confidence remains intact.
The broader Nigerian financial system remains stable and secure.“We are dedicated to maintaining the safety and integrity of our financial system, and this measure underscores that dedication,” the statement emphasized.
Following the revocation, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of Heritage Bank, in accordance with the Banks and Other Financial Institutions Act (BOFIA) 2020.This action by the CBN is aimed at maintaining financial stability and protecting depositors’ interests. The public is reassured that the withdrawal of Heritage Bank’s license will not adversely affect the overall health of the financial system.
The statement from the CBN read, “In line with our mandate to ensure a robust financial system in Nigeria and under the authority granted by Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020, the Central Bank of Nigeria has revoked the license of Heritage Bank Plc with immediate effect.“
This step was necessary due to the bank’s violation of Section 12 (1) of BOFIA 2020. The bank’s Board and Management failed to enhance its financial status, posing a threat to financial stability.
“After extensive engagement and various supervisory actions aimed at halting the decline, the bank’s condition continued to deteriorate without reasonable prospects of recovery, necessitating the revocation of the license.“The CBN’s decision is intended to reinforce public trust in the banking system and ensure the continued soundness of our financial system.“The NDIC is now appointed as the bank’s liquidator under Section 12 (2) of BOFIA 2020.“
We assure the public that Nigeria’s financial system remains robust. Today’s action is a testament to our unwavering commitment to ensuring the safety and soundness of our financial system.”
