The Central Bank of Nigeria has revoked the banking License of Heritage Bank Plc. This is announced in a press release released today 3rd June 2024 by Mrs Hakama Sidi Ali, acting Director, Corporate Communications of the apex bank
See the press release below:
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. This action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020. “
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.“
Heritage Bank Plc was founded in 1989. Initially, it began operations as Societe Generale Bank (Nigeria) (SGBN). After facing a period of inactivity due to regulatory issues, it was restructured and rebranded as Heritage Banking Company Limited in February 2013, before obtaining a commercial banking license from the Central Bank of Nigeria. Later, it acquired Enterprise Bank Limited in October 2014, which further solidified its presence in the Nigerian banking sector.
