By Our Reporter
The Central Bank of Nigeria has revoked the operational license of Heritage Bank Plc, with immediate effect for failing to improve the bank’s financial performance.
The Acting Director, Corporate Communications, CBN, Hakama Sidi Ali, disclosed this in a statement.
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.
‘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.”
The bank traces its origin to the late 1970’s, whn it was founded as Societe General Bank (Nigeria), by the late Olusola Saraki. In January 2006, the Central Bank closed down Societe Generale on account of failure to meet new minimum capital requirements of US$155 million (NGN:25 billion) for a National Bank.
In October 2014, Heritage Banking Company Ltd successfully met the requirements of the Asset Management Corporation of Nigeria (AMCON) and the Central Bank of Nigeria toward owning 100% shares in Enterprise Bank Ltd.
On 27 January 2015, AMCON officially transferred ownership of Enterprise Bank Ltd to Heritage Bank Plc.
However, on Monday 3 June 2024, the bank’s fortune fell as the Central Bank of Nigeria revoked the bank’s operational license due to the bank’s breach of Section 12 (1) of BOFIA, 2020, owing to bank’s breach of section 12 of BOFIA Act 2020.