The Central Bank of Nigeria (CBN) says it has revoked the licence of Heritage Bank Plc with immediate effect. 

The regulator said the decision followed the bank’s inability to improve its financial performance.

The apex bank announced the revocation in a statement on Monday signed by Hakama Ali, its acting director, corporate communications.

The CBN said the move is 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.

“This action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020,” the statement reads.

“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.”

The CBN said Heritage Bank has not improved and “has no reasonable prospects of recovery”, thereby making the revocation of the licence 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 further statement reads.

“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 CBN noted that the revocation reflects its continued dedication to take all necessary steps to ensure the safety and soundness of Nigeria’s financial system.

[TheCable]