Heritage Bank Loses License Again

The Central Bank of Nigeria (CBN) revoked the banking license of Heritage Bank for the second time in 18 years.

First as Societe Generale Bank in 2006 and now in 2024 as Heritage Bank Plc.

Twice, both scenarios paint a stark picture of the bank’s turbulent journey with regulatory compliance in relation to financial adequacy and operational stability.

In 2006, the Central Bank of Nigeria (CBN) revoked the banking license of Societe Generale Bank and 13 other banks that failed to meet the new capital requirements of N25 billion during the banks’ recapitalization program.

The story took a positive turn in 2012 when International Energy Insurance Investments Ltd (IEI) acquired the defunct Societe Generale Bank of Nigeria’s license from the CBN.

Afterwards, Heritage Bank Plc emerged and began its operations in Nigeria as a regional bank on March 14, 2013.

According to the CBN, “A Commercial Bank with regional banking authorisation shall be entitled to carry on its banking business operations within a minimum of six (6) and a maximum of twelve (12) contiguous States of the Federation, lying within not more than two (2) Geo-Political Zones of the Federation, as well as within the Federal Capital Territory.”

However, on June 3, 2024, the apex bank again revoked Heritage Bank’s banking license due to its inability to improve financial performance, constituting a breach of Section 12(1) of the Banks and Other Financial Institutions Act (BOFIA) 2020.

Both scenarios suggest the bank struggles with business readiness and resilience.

According to the Nigeria Deposit Insurance Corporation (NDIC), the CBN revoked the licenses of 24 banks between 2000 and 2024. Some of them are still under liquidation.

Of these banks, the winding-up orders for the defunct Triumph Bank and Peak Merchant Bank remain unresolved, as they are still under litigation being challenged and are still pending in court.

Similarly, liquidation activity has been terminated for Skye Bank.