Customers in disarray as CBN revokes Heritage Bank License

 

Admin I Monday, June 03, 2024

 

LAGOS, Nigeria – The Central Bank of Nigeria, CBN has revoked the operating license of Heritage Bank of Nigeria.

In a statement, Acting Director Corporate Communications, Mr. Hakama Sidi Ali said the bank took the decision in accordance with its mandate to promote sound financial system in Nigeria in exercise of its power under section 12 of the Banks and Other Financial Act(BOFIA) 2020.

The CBN said the revocation is with immediate effect. It also appointed NDIC to liquidate the bank. 

“The action has become necessary due to the bank’s breach of section 12(1) of the BOFIA 2020”, adding that the board and management have not been able  to improve the bank’s financial performance, a situation which constitutes a threat to financial stability.

The CBN said this follows a period in which the CBN engaged with Heritage bank and prescribed various supervisory steps intended to stem the decline.

“Regrettably, the bank has continued to suffer and has no reasonable prospect of recovery, thereby making the revocation of the license the next necessary step”.

The CBN said it took the decision to strengthen public confidence in the banking system and ensure that the soundness of financial system is not impaired.

“The Nigeria Deposite Insurance Corporation, NDIC is hereby appointed as the liquidator of the bank in accordance with section 12(2) of BOFIA Act 2020