The Central Bank of Nigeria (CBN) has revoked the banking licence of Heritage Bank Plc, effective immediately. The action follows the bank’s reported breach of relevant laws and the inability to improve its financial performance and stability.
A press release by CBN announcing the revocation was signed by Mrs, Hakama Sidi, the Acting Director, Corporate Communications.
The apex bank claims to have had a long period of engagement with Heritage Bank and prescribed several steps the bank should follow to mitigate its decline – but to no avail. CBN says it has now reached the inevitable decision to close the bank and protect the integrity of the Nigerian financial system.
“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”, CBN stated.
“In accordance with our mandate to promote a sound financial system in Nigeria and exercise our powers under Section 12 of BOFIA 2020, we have revoked the license of Heritage Bank Plc,” the CBN reported in its press release. “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.“
Liquidation
To ensure an orderly dissolution, CBN appointed the Nigeria Deposit Insurance Corporation (NDIC) as the Liquidator of the bank, as provided by Section 12 (2) of BOFIA 2020.
The CBN went further assure the public that, ”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“.
Brief History of Heritage
Heritage Bank Plc is a commercial bank licensed by the Central Bank of Nigeria that offers retail banking, corporate banking, online/internet banking, investment banking, and asset management services. Its head office is located at 143 Ahmadu Bello Way, Victoria Island, Lagos, Nigeria.
The bank’s current Acting Chairman is Jani Ibrahim, and Akinola George-Taylor is the chief executive officer.
Heritage Bank has roots in another defunct bank, Societe Generale Bank (Nigeria), owned by the family of Dr Olusola Saraki, a former Senate President of the 8th Senate of Nigeria.
Mr. Saraki has had a strained relationship with President Bola Tinubu, which may have begun in 2015. At the time, their party All Progressive Congress (APC) won the presidential election. Mr. Saraki then contested and won the Senate Presidency against the wish of Mr. Tinubu, then the National Leader of the party. He had publicly backed another senator, Ahmed Lawan.
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