The Central Bank of Nigeria (CBN) has revoked the licence of Heritage Bank Plc with immediate effect.

The revocation, according to the CBN, is 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.

The CBN, in a statement on Monday, June 3, 2024, by Hakama Sidi Ali, the acting Director, Corporate Communications, stated that Heritage Bank operations constituted a threat to financial stability.

The CBN said: “This action has become 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. This follows a period during which the CBN engaged with the bank and

prescribed various supervisory steps intended to stem the decline.

“Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby making the revocation of the license the next necessary step.

“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.

“We wish to assure the public that the Nigerian financial system remains on a solid

footing.

“The action we are taking today reflects our continued commitment to take all

necessary steps to ensure the safety and soundness of our financial system.”

The Star