The Central Bank of Nigeria (CBN) has revoked the operating license of Heritage Bank with immediate effect.

The apex bank in a press release issued Monday by its Mrs. Hakama Sidi Ali, Acting Director, Corporate Communications, said its decision is in exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA 2020, which aims at promoting a sound financial system in Nigeria.

The statements read: “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 statement disclosed that the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020.