By Kayode Ogunwale

he Central Bank of Nigeria (CBN) has made a significant decision by revoking the operational license of Heritage Bank Plc. Mrs. Hakama Sidi, the Acting Director of Corporate Communications of the CBN, announced this development in a press statement released on Monday.
The revocation of the license was attributed to the bank’s board and management’s failure to enhance the financial performance of the institution.
The CBN cited its mandate to promote a sound financial system in Nigeria and its powers under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020 as the basis for revoking Heritage Bank’s license with immediate effect. According to the statement, this action was deemed necessary due to the bank’s breach of Section 12 (1) of BOFIA 2020, as the board and management had been unable to improve the bank’s financial performance, posing a threat to financial stability.
The CBN had previously engaged with the bank and prescribed various supervisory steps to address the decline. However, the bank’s continued financial struggles and lack of prospects for recovery led to the inevitable revocation of its license. The CBN emphasized that this decision aims to strengthen public confidence in the banking system and safeguard the soundness of Nigeria’s financial system.
As part of the regulatory measures, the CBN appointed the Nigeria Deposit Insurance Corporation (NDIC) as the Liquidator of Heritage Bank by Section 12 (2) of BOFIA 2020. The CBN sought to reassure the public that despite this development, the Nigerian financial system remains robust and secure.
The CBN reiterated its commitment to taking all necessary steps to ensure the safety and soundness of Nigeria’s financial system, affirming that this action reflects its dedication to maintaining a stable financial environment.