The Central Bank of Nigeria (CBN) has revoked the banking license of Heritage Bank Plc with immediate effect, citing the need to promote a sound financial system in the country. This decisive move was announced by Hakama Ali, the Acting Director of Corporate Communications for the apex bank, on Monday.

According to Ali, the revocation aligns with the CBN’s mandate under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020. The decision follows Heritage Bank’s breach of Section 12 (1) of BOFIA, 2020, and the inability of its Board and Management to improve the bank’s financial performance, which poses a significant 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 revocation of the license the next necessary step,” Ali stated.

The CBN emphasized that this action is part of its broader efforts to strengthen public confidence in the banking system and ensure the soundness of the financial sector is not compromised. To manage the aftermath of this revocation, the CBN has appointed the Nigeria Deposit Insurance Corporation (NDIC) as the liquidator of Heritage Bank under Section 12 (2) of BOFIA, 2020.

In the statement, Ali reassured the public of the resilience and stability of Nigeria’s financial system: “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.”