The Central Bank of Nigeria (CBN) has announced the immediate revocation of Heritage Bank Plc's license. This decision was conveyed through a statement issued by Hakama Sidi-Ali, the Acting Director of the Corporate Communications Department, on Monday in Abuja.
Mrs. Sidi-Ali stated that the revocation aligns with the CBN's mandate to uphold a robust financial system in Nigeria, exercising its authority under Section 12 of the Banks and Other Financial Institutions Act. The necessity for this action arose from the bank's violation of Section 12(1) of BOFIA.
"The Board and Management of the bank have failed to enhance the bank’s financial performance, posing a threat to financial stability," Mrs. Sidi-Ali remarked.
She further explained that the CBN had previously engaged with the bank, prescribing various supervisory measures to halt its decline. However, despite these efforts, the bank's situation persisted without reasonable prospects for recovery, necessitating the license revocation.
This decision aims to bolster public trust in the banking sector and safeguard the soundness of the financial system, Mrs. Sidi-Ali emphasized. In accordance with Section 12(2) of BOFIA 2020, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the bank's liquidator.
"We want to assure the public that the Nigerian financial system remains stable and reliable," Mrs. Sidi-Ali assured.
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