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CBN Governor, Yemi Cardoso and Managing Director/CEO Heritage Banking Co Ltd, Akin George-Taylor

Three months ago, specifically on February 19, 2024, reported exclusively that the apex bank in Nigeria, Central Bank of Nigeria (CBN) would either merge Heritage Bank Limited or the financial institution would be acquired by another bank.

Exclusive: Heritage Bank Top List Of Financial Institutions To Be Merged By CBN-Source

The report was based on the several claims by depositors that they could not access their funds and a confirmation by a CBN insider.

Just as we reported then, the CBN has now revoked the banking licence of Heritage Bank hinging its decision on the bank’s inability to meet customer needs and pay owed funds.

“In accordance with its mandate to promote a sound financial system in Nigeria and in the exercise of its powers under Section 12 of the Banks and Other Financial Institutions Act, hereby revokes the Licence of Heritage Bank Plc,” a statement from the apex bank read on Monday.

“The action has become necessary due to the bank’s breach of Section 21(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,” the regulator added.

The Banks and Other Financial Institutions Act (BOFIA) mandates the CBN to turn over significantly or critically under-capitalised banks to the deposit insurer for distress resolution.

Crisis Hit Heritage Bank As CBN Announces New Capital Base

Officials of the Nigeria Deposit Insurance Corporation (NDIC) had earlier this morning visited several branches of the bank to conduct investigations after several reports had indicated that the bank was under serious challenges, especially with the withdrawal of funds

Heritage Bank has been struggling to meet up with it’s banking services in the past five years, with several reports of depositors not being able to access their funds.

There have also being alleged reports of insider frauds and management leadership tussle, all worsening the already ill-health of the bank.

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