The Central Bank of Nigeria (CBN) has revoked the operating licence of Heritage Bank with immediate effect.
CBN’s Acting Director, Corporate Communications, Hakama Ali, disclosed in a statement that: “The CBN, 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, hereby revokes the licence of Heritage Bank Plc with immediate effect.”
The financial Institution regulator said the action became necessary due to Heritage Bank’s breach of Section 12 (1) of BOFIA, 2020.
Heritage Bank whose goal is to deliver banking experience beyond the traditional to its customers by consistently providing outstanding service and future-proof financial solutions has failed on its promises.
The CBN statement noted that: “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. 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.”
Recall that the apex bank had March 2023 issued a letter of no objection to the appointment of Akinola George-Taylor as the substantive Managing Director/Chief Executive Officer of Heritage Bank. Akinola George-Taylor joined Heritage Bank as acting MD/CEO on 12th September 2022. George-Taylor succeeded Mr. Ifie Sekibo as MD/CEO following the approval by the CBN.
