By Ibrahim Abdulsalam (U19MM1123)
The Central Bank of Nigeria (CBN) has officially revoked the operating licence of Heritage Bank Plc. Citing non-compliance with Section 12(1) of BOFIA 2020, the apex bank described the institution’s continued financial deterioration as a threat to systemic stability. Techpoint Africa reported that Heritage Bank exhibited a negative shareholder equity of approximately ₦900 billion, rendering it without a realistic path to recovery. Neusroom added that the bank's prior acquisition of Enterprise Bank and exposure to the Treasury Single Account arrangement exacerbated its liquidity gap.
As mandated by BOFIA, CBN elevated the Nigeria Deposit Insurance Corporation (NDIC) to act as liquidator. NDIC will oversee asset recovery, creditor repayment, and depositor insurance coverage.
“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.” – CBN Press Release
This regulatory decision highlights the critical nature of compliance, recapitalisation, and corporate governance in Nigeria’s banking sector. Underperforming banks not only risk their own future but can threaten the entire financial ecosystem.
Want to learn more? Visit the CBN website or read an analysis from legal expert Adeola Kolawole on the legal implications of licence revocation.