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The Central Bank of Nigeria (CBN), on Monday, revoked the operating licence of Heritage Bank Plc, one of the nation’s commercial banks.

In a statement by the CBN announcing the withdrawal of the banking licence, it said the decision 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.

CBN said the action had become necessary due to Heritage Bank’s breach of Section 12 (1) of BOFIA, 2020.

“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,” the 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.”

The revocation takes immediate effect.

CBN said the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the
liquidator of Heritage Bank in accordance with Section 12 (2) of BOFIA, 2020.

CBN said it would want 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 concluded.