The Event
On June 3, 2024, the Central Bank of Nigeria (CBN) announced the revocation of Heritage Bank PLC's (Heritage Bank) banking license under Section 12 of the Banks and Other Financial Act (BOFIA) 2020. The CBN stated that the inability of Heritage Bank’s board and management to improve the bank’s financial performance despite prescribed remedial supervisory steps necessitated this action. Specifically, the CBN highlighted the following issues shown in the table below:
The CBN aims to strengthen public confidence in the banking system and ensure that the soundness of the financial system is not compromised. As of March 31, 2024, 90% of the bank’s active loan portfolio of around ₦700 billion was considered non-performing.
Notably, this isn't the first time the CBN has revoked Heritage Bank's license. Originally Societe General Bank (SBG), the bank was rebranded as Heritage Bank in 2012 and began operations on March 4, 2013, with a regional
