The Central Bank of Nigeria (CBN) has revoked the operational license of Heritage Bank Plc, effective immediately. This decision was made under the CBN’s mandate to promote a sound financial system in Nigeria, according to a statement signed by the CBN’s acting Director of Corporate Communications, Hakama Sidi Ali.
The CBN took this action due to Heritage Bank’s breach of Section 12 (1) of the Banks and Other Financial Act (BOFIA) 2020, which has led to a significant decline in the bank’s financial performance. Despite the CBN’s efforts to stem the decline, the bank has continued to suffer and has no reasonable prospects of recovery.
The Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the Liquidator of the bank, in accordance with Section 12 (2) of BOFIA, 2020. The CBN assures the public that the Nigerian financial system remains stable and that this action was taken to ensure the safety and soundness of the financial system.
This development comes as a significant move by the CBN to strengthen public confidence in the banking system and prevent any potential threats to financial stability.
