The Central Bank of Nigeria(CBN) has said that the revocation of licence of Heritage Bank with immediate effect was as a result of the bank’s breach of Section 12 (1) of BOFIA, 2020.

This was made known in a statement on Monday signed by Acting Director, Corporate Communication at the apex bank, Hakama Sidi Ali.

She said: “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 licence the next necessary step.”

Ali said 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.

She said the Nigeria Deposit Insurance Corporation (NDIC) had been 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", she said.