The Central Bank of Nigeria (CBN) on Monday disclosed that 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, it had revoked the licence of Heritage Bank Plc with immediate effect
The apex bank’s Ag. Director, Corporate Communications, Hakama Sidi Ali, stated that the action became necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020.
According to her, specifically the bank’s Board and Management have not been able to improve the bank’s financial performance, a situation which constitutes a threat to the nation’s financial stability.
She pointed out that this followed a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline, adding that 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.
Ali maintained that consequently, the CBN revoked the Heritage Bank’s licence to strengthen public confidence in the banking system and ensure that the soundness of our financial system is not impaired.
She further clarified: “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.”
