….Bank to be liquidated

The Central Bank of Nigeria (CBN) has revoked the banking license of Heritage Bank, appointing the Nigerian Deposit Insurance Corporation (NDIC) as its liquidator.

In a statement sent to Economy Post on Monday morning, the CBN said this revocation was 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. The apex bank said the revocation of the bank’s licence of Heritage Bank Plc was with immediate effect.

“This action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA,” CBN said in a statement signed by Acting Director of Corporate Communications, Ms Hakama Sidi Ali.

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“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,” CBN 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.”

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Ms Ali said the CBN had taken this action to strengthen public confidence in the
banking system and ensure that the soundness of our financial system was not impaired, noting that NDIC had been 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.”