by Fiona Nanna, ForeMedia News

Monday 3rd June 2024,

11:00 AM

In a decisive move to safeguard financial stability, the Central Bank of Nigeria (CBN) has taken the unprecedented step of revoking the banking license of Heritage Bank Plc, effective immediately.

This action, announced by the CBN’s Acting Director of Corporate Communication Department, Sidi Ali, follows Heritage Bank’s persistent inability to address its deteriorating financial performance, raising concerns about its impact on the broader financial landscape.

Despite the regulatory interventions and supervisory measures prescribed by the CBN, Heritage Bank’s management has failed to reverse its fortunes, prompting the apex bank to intervene to mitigate potential risks to the financial system.

“The Nigerian financial system remains resilient, and our priority is to ensure its stability and integrity,” stated the CBN in its official communication. “This decision underscores our commitment to upholding public trust and confidence in the banking sector.”

The Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of Heritage Bank, pursuant to the provisions of the Banks and Other Financial Act 2020.

This move, while unprecedented, is viewed as necessary by regulatory authorities to uphold the overall health of the financial system and protect the interests of depositors. It has been emphasized that the revocation of Heritage Bank’s license will not compromise the stability of the financial sector.

As the industry absorbs this development, stakeholders are closely monitoring the implications and the broader regulatory response to ensure the resilience and soundness of Nigeria’s financial system.