Governor of the Central Bank of Nigeria CBN, Yemi Cardoso.

The Central Bank of Nigeria CBN, has revoked the banking licence of Heritage Bank Plc, according to information posted on its verified X handle @cenbank.

A statement dated June 3, 2024 and signed by the acting Director, Corporate Communications of the apex bank, Mrs Hakama Sidi Ali, says that the revocation, which is with immediate effect, is in accordance with its mandate to promote sound financial system in the country in line with its powers under section 12 of the Banks and Other Financial Act BOFIA, 2020.

The statement also says that the decision of the apex bank to wield the sledge hammer against the bank follows the bank’s breach of Section 12 (1) of BOFIA, 2020, as the Board and Management of the bank have not been able to improve the bank’s financial performance.

This situation, according to the apex bank constitutes a threat to financial stability in the country. It was further gathered that the CBN has appointed the Nigerian Deposit Insurance Corporation NDIC as liquidators of the ill-fated bank. It argued that the action was designed to strengthen and build confidence in the country’s financial system.

The statement reads in part: “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.

“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.”