By CHARLES IWUOHA

The Central Bank of Nigeria (CBN) has announced that it has revoked the banking licence of Heritage Bank.

Ag. Director, Corporate Communications, Mrs Hakama Sidi Ali, said the revocation was done in accordance with its mandate to promote a sound financial system in Nigeria.

She said: “The Central Bank of Nigeria (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.”

Ali added that this action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020.

The apex bank added 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.

Ali’s noted that this followed a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline.

She stressed: “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.”

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