The Central Bank of Nigeria (CBN) has appointed the Nigeria Deposit Insurance Corporation (NDIC) as liquidator of Heritage Bank following the withdrawal of the bank’s operating licence.
The Acting Director, Corporate Communications of the CBN, Mrs. Hakama Sidi Ali, disclosed this in a statement on Monday, saying the withdrawal of the operational license of Heritage Bank was done in accordance with its mandate of promoting a sound financial system in Nigeria.
The statement read in part: “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.”
The apex bank stated that the step became necessary due to Heritage Bank’s breach of Section 12 (1) of BOFIA, 2020.
It added: “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.”
Consequently, the CBN appointed NDIC to wind down the bank.
“The Nigeria Deposit Insurance Corporation (NDIC) is hereby appointed as the
Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020,” CBN stated.
The Nigerian bankers’ bank assured that the Nigerian financial system remains on a solid footing, adding, “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.”’
