By Ihechi Enyinnaya
The Central Bank of Nigeria (CBN) has swiftly revoked Heritage Bank Plc’s banking license, citing its mandate to uphold Nigeria’s financial stability and exercising its authority under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
Hakama Ali, Acting Director of Corporate Communications at the CBN, emphasized the bank’s breach of BOFIA 2020 Section 12 (1) and its inability to enhance financial performance, posing a risk to stability. Despite CBN’s efforts to intervene, the bank’s situation deteriorated, necessitating license revocation. To bolster public trust and ensure system soundness, CBN appointed the Nigeria Deposit Insurance Corporation (NDIC) as liquidator, as per BOFIA 2020 Section 12 (2).
said “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.
“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,” the statement added.
The statement reaffirms CBN’s dedication to maintaining a robust financial system for Nigeria.