The Central Bank of Nigeria (CBN) has revoked the banking license of Heritage Bank Plc, effective immediately, citing the bank’s inability to improve its financial performance and the resulting threat to financial stability. This decisive action was disclosed in a statement on Monday by Sidi Ali, Acting Director of the Corporate Communication Department at the CBN.

The CBN highlighted that despite several supervisory interventions, the management of Heritage Bank failed to reverse its declining financial health, leading to the bank’s deteriorating condition and no reasonable prospects of recovery. Consequently, the CBN took this measure to safeguard the integrity of the financial system and maintain public confidence.

“The Central Bank of Nigeria, following its mandate to promote a sound financial system in Nigeria and exercising its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020, hereby revokes the license of Heritage Bank Plc with immediate effect,” the statement read.

The statement further detailed that the bank’s breach of Section 12 (1) of BOFIA 2020 necessitated this action. The CBN had engaged with Heritage Bank and prescribed various supervisory steps to stem the decline, but these efforts were unsuccessful.

To manage the fallout from the license revocation, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of Heritage Bank. This appointment is made under Section 12 (2) of BOFIA 2020, with the NDIC taking charge of the liquidation process to protect depositors’ interests.

“The Nigerian financial system remains on a solid footing,” the CBN assured in its statement. “We are committed to ensuring the safety and soundness of our financial system, and this action reflects that commitment.”