The Central Bank of Nigeria (CBN) has cancelled the operating license of Heritage Bank, a well-known commercial bank in Nigeria.

This announcement was made in a statement released on Monday, June 3, by the Acting Director of Corporate Communications at CBN, Hakama Sidi Ali.

Ali stated that the CBN, using its power under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020, decided to cancel Heritage Bank Plc’s license to ensure stability in Nigeria’s financial system.

She explained that this decision was necessary because the bank violated Section 12 (1) of BOFIA, 2020.

Ali mentioned that the bank’s Board and Management failed to improve its financial situation, which threatened the stability of the financial system.

The statement

“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.

“Consequently, the CBN has taken this action to strengthen public confidence in the banking system and ensure that the soundness of our financial system is not impaired.

“The Nigeria Deposit Insurance Corporation (NDIC) is hereby 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.”