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CBN Reveals Why It Revoked Heritage Bank License

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The Central Bank of Nigeria (CBN) revoked Heritage Bank’s operating license yesterday, citing the board of directors’ failure to improve its financial performance.

Meanwhile, the Nigeria Deposit Insurance Corporation (NDIC) has commenced the liquidation of the bank and has stated that it will pay the insured amount of N5 million per depositor.

Announcing the decision of the apex bank to revoke the bank’s license, Hakama Sidi Ali, Acting Director of Corporate Communications at CBN, stated: “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.”

In statement announcing the commencement of the liquidation of the bank, Director, Communication & Public Affairs, NDIC, Bashir Nuhu, said: “Following the revocation of the banking licence of Heritage Bank Plc by the Central Bank of Nigeria (CBN) today, June 3, 2024 and the appointment of the Nigeria Deposit Insurance Corporation (NDIC) as the Liquidator, pursuant to Section 12(2) of BOFIA, 2020, the corporation wishes to announce to depositors of the bank in particular and the banking public in general, as follows: “The NDIC has commenced the liquidation of Heritage Bank Plc: In accordance with Section 55 sub-section 1 & 2 of the NDIC Act 2023, the corporation has commenced the liquidation process of the failed bank with immediate verification and payment of insured deposits to the bank depositors.

“Depositors of the bank that have alternate accounts within the industry will be paid up to the insured amount of N5 million per depositor using their Bank Verification Number (BVN) to locate their alternate account. While depositors with funds in excess of N5 million will be paid liquidation dividend upon realization of the bank’s assets and recovery of debts owed to the bank.

“Verification and Payment of Depositors Without Alternate Bank Account: All depositors of the defunct bank without alternate bank account in the industry are advised as follows:

“Visit the nearest branch of the bank with proof of account ownership, verifiable means of identification such as driver’s licence, permanent voter’s card, National Identity Card, together with their alternate account and Bank Verification Number (BVN) for the verification of their deposits and subsequent payment of insured sums or file online claim by visiting the NDIC website claims page on, download and fill the claims forms and upload the required documentation.

“Verification and Payment of Creditors: Creditors are also advised to visit the nearest branch of the bank to file their claims or via the online platform. Please note that the process of payment of creditors will commence immediately after all depositors have been paid.

“Debtors’ Repayment of Loans: Debtors that are yet to complete the repayment of loans are advised to contact the Corporation’s Asset Management Department (AMD). Visit the NDIC website for more details.

“The NDIC wishes to assure the entire banking public of its commitment to the continued safety of depositors’ funds in all licensed banks. As such, depositors are urged to continue their banking businesses without fear as banks whose licenses have not been revoked remain safe and sound.”

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