The Central Bank of Nigeria revoked Heritage Bank's license, citing BOFIA 2020. NDIC officials began a distress resolution takeover, visiting multiple Heritage Bank branches on Monday.

BREAKING: CBN revokes operating licence of Heritage Bank with immediate effect

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The Central Bank of Nigeria (CBN), Monday, announced the revocation of the operating license of Heritage Bank Limited with immediate effect.

In a statement issued by CBN’s acting Director of corporate Communications, Mrs Hakama Sidi Ali, the apex bank said the move was following its mandate to promote a sound financial system in Nigeria and in the exercise of its powers under Section 12 (1l of the Banks and Other Financial Act (BOFIA) 2020.

Meanwhile, the Nigerian Deposit Insurance Corporation (NDIC) visited several Heritage Bank branches on Monday morning as talks of a distress resolution takeover gathered steam.

NDIC officials were seen at the Victoria Island, Allen Avenue, Ilupeju, and Ladiopo branches of the bank, showing a memo that dignified they were on “special assignment.”

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The officials declined to comment on the memo or provide any details.

The special assignment is connected to a distress resolution and a takeover of Heritage Bank. The Banks and Other Financial Institutions Act (BOFIA) mandates the Central Bank to turn over significantly or critically under-capitalised banks to the deposit insurer for distress resolution.

A Heritage Bank spokesperson did not immediately respond to a request for comments.

Heritage Bank’s high indebtedness has been public for five years and there has been significant coverage of the erosion of its capital base.

In December 2023, there were reports that Heritage Bank failed a stress test, prompting the Central Bank to ask the financial institution to seek strategic investors to aid its recapitalisation

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