CBN Revokes Heritage Bank’s License Over Financial Instability

The Central Bank of Nigeria (CBN) has revoked the banking license of Heritage Bank Plc with immediate effect due to the bank’s failure to improve its financial performance, which posed a threat to financial stability. This decision was announced by Sidi Ali, Acting Director of Corporate Communication Department, on Monday.
The CBN’s statement highlighted that despite various supervisory measures, Heritage Bank’s management has been unable to halt its financial decline, leaving no reasonable prospects for recovery. As a result, the CBN has acted to protect the financial system and maintain public confidence.
“The Nigerian financial system remains on a solid footing. We are committed to ensuring the safety and soundness of our financial system, and this action reflects that commitment,” the statement added.
In accordance with the Banks and Other Financial Act 2020, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of Heritage Bank. This move is seen as a significant step by the CBN to safeguard the stability of the financial system and protect depositors’ funds. The public has been assured that the revocation of Heritage Bank’s license will not affect the overall health of the financial system.
The CBN explained that the revocation was necessary due to Heritage Bank’s breach of Section 12 (1) of the BOFIA 2020. The bank’s inability to improve its financial performance has been a persistent issue, despite the CBN’s efforts to intervene and prescribe various supervisory steps. The continued decline and lack of recovery prospects led to the revocation decision.
“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 statement concluded.
The CBN’s actions underscore its dedication to maintaining a robust and stable financial environment in Nigeria.