The Central Bank of Nigeria (CBN) has officially revoked the operating license of Heritage Bank Plc, citing financial instability and continuous decline as the primary reasons.
In a statement released by Hakama Sidi Ali, the Acting Director of Corporate Communications at CBN, the decision was made in line with the CBN’s mandate to maintain a sound financial system in Nigeria, as stipulated under Section 12 of the Banks and Other Financial Act (BOFIA) 2020.
According to the statement, Heritage Bank breached Section 12 (1) of BOFIA 2020, and despite several supervisory interventions by the CBN, the bank’s financial performance did not improve, posing a threat to the stability of Nigeria’s financial system.
The CBN said it’s action aims to reinforce public confidence in the banking sector and ensure the overall soundness of the financial system.
The Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator for Heritage Bank, as provided under Section 12 (2) of BOFIA 2020.
The CBN reassured the public that the Nigerian financial system remains robust and that the revocation of Heritage Bank’s license was a necessary step to safeguard financial stability.
