The Central Bank of Nigeria (CBN) has revoked the operating license of Heritage Bank Plc. In a statement signed by Hakama Sidi Ali, the Acting Director of Corporate Communications, the CBN announced that the revocation is in line with its mandate to ensure a sound financial system in Nigeria and in accordance with Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020.

The statement reads: “The CBN, in accordance with its mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of BOFIA 2020, hereby revokes the license 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.”

The CBN’s decision follows a period of engagement with Heritage Bank, during which various supervisory steps were prescribed to halt the bank’s decline. Despite these efforts, the bank continued to struggle with no reasonable prospects of recovery, prompting the revocation of its license. The CBN emphasized that this measure aims to bolster public confidence in the banking system and maintain the soundness of Nigeria’s financial sector.

In accordance with Section 12 (2) of BOFIA 2020, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of Heritage Bank. The CBN reassured the public of the stability of the Nigerian financial system, stating, “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.”