Central Bank of Nigeria terminates operating licence of Heritage Bank, gives reasons

The Central Bank of Nigeria has terminated the operating licence of Heritage Bank with immediate effect, following it’s breach of Section 12 (1) of BOFIA, 2020.

The apex bank explained that the reason for the termination was due to the failure of the Board and Management of Heritage Bank to improve the its financial performance, a situation which constitutes a threat to financial stability.

This was disclosed in a statement by Hakama Sidi Ali (Mrs.), Ag. Director, Corporate Communications of the CBN.

The statement reads, “The Central Bank of Nigeria (CBN), in accordance with its mandate to promote a sound

financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020, hereby revokes the licence 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 Managementof the bank have not been able to improve the

bank’s financial performance, a situation which constitutes a threat to financial stability. 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 revocationof the license the next necessary step.

“Consequently, 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 Nigeria Deposit Insurance Corporation (NDIC) is hereby appointed as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020.

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.”