The Central Bank of Nigeria has offered reasons for its revocation of the operating licence of Heritage Bank.

The explanation was offered by the Acting Director, Corporate Communications, Hakama Sidi-Ali, in a statement.

In the statement she issued in the early hours of Monday, Sidi-Ali said: โ€œThe 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.

โ€˜This action has become necessary due to the bankโ€™s breach of Section 12 (1) of BOFIA, 2020.

โ€œThe Board and Management of the bank have not been able to improve the bankโ€™s financial performance, a situation which constitutes a threat to financial stability.

โ€œThis follows a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline.

โ€œRegrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby making the revocation of the license the next necessary step.

โ€œConsequently, 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.

โ€œThe Nigeria Deposit Insurance Corporation (NDIC) is hereby appointed as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020.

โ€œWe 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.โ€