The Central Bank of Nigeria (CBN) revokes banking license of Heritage Bank Plc with immediate effect. The apex bank liquidated Heritage Bank and designated the NDIC as the Liquidator following BOFIA 2020, Section 12(2).
The CBN’s action aligns with its mandate to foster a robust Nigerian financial system, as per BOFIA 2020, Section 12.
In a statement signed by Ag. Director, Corporate Communications Hakama Sidi Ali (Mrs.), the CBN stated, “The action became necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020.”
It said the Board and Management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability.
The CBN had engaged with the bank and prescribed various supervisory steps intended to stem the decline. However, despite these efforts, the bank’s financial situation did not improve, leading to the revocation of its license. CBN revokes banking license.
Consequently, the CBN has taken action to bolster public trust in banking and safeguard financial system stability, as emphasized.
The Nigeria Deposit Insurance Corporation (NDIC) is appointed as the liquidator under BOFIA 2020, Section 12(2).
The CBN assures the public that while addressing Heritage Bank’s issues, the Nigerian financial system remains stable. It reiterated its commitment to taking all necessary steps to ensure the safety and soundness of the financial system.
