JUST IN: CBN Revokes License Of A Top Nigerian Bank

The Central Bank of Nigeria (CBN) has revoked the operating license of Heritage Bank.

The Acting Director of Corporate Communications at CBN, Hakama Sidi Ali, announced this in a statement: “The Central Bank of Nigeria, CBN, in accordance with its mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020, hereby revokes the licence of Heritage Bank Plc with immediate effect.”

She explained that the action was necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020. “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,” she stated.

This decision follows a period during which the CBN engaged with Heritage Bank and prescribed various supervisory steps to halt its decline. Despite these efforts, the bank continued to struggle with no reasonable prospects of recovery, making the license revocation the next necessary step.

Ali further stated, “Consequently, the CBN has taken this action to strengthen public confidence in the banking system and ensure that the soundness of our financial system is not impaired. The Nigeria Deposit Insurance Corporation (NDIC) is hereby appointed as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020.”

She assured the public that the Nigerian financial system remains stable and emphasized that this action reflects CBN’s commitment to ensuring the safety and soundness of the financial system.