The Central Bank of Nigeria (CBN) has canceled Heritage Bank’s operating license. Hakama Sidi Ali, the Acting Director of Corporate Communications at CBN, revealed this information.
She stated, “The Central Bank of Nigeria, in line with its duty to maintain a stable financial system in Nigeria and using its authority under Section 12 of the Banks and Other Financial Act (BOFIA) 2020, has revoked the license of Heritage Bank Plc effective immediately. This decision was made because the bank violated Section 12 (1) of BOFIA, 2020.”
She further explained that Heritage Bank’s Board and Management have failed to improve its financial health, posing a risk to financial stability.
The statement continued, “This action follows a period during which the CBN worked with the bank and suggested several supervisory measures to halt its decline. Unfortunately, the bank has continued to struggle and shows no realistic chance of recovery, making the revocation of its license necessary.”
The CBN emphasized that this decision aims to boost public confidence in the banking system and ensure the financial system remains robust. Additionally, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the bank’s Liquidator as per Section 12 (2) of BOFIA, 2020.
The CBN reassured the public that Nigeria’s financial system is strong and stable. This action demonstrates its ongoing commitment to safeguarding its safety and soundness.
