Heritage Bank: CBN Denies Plan To Revoke Licenses Of Three Other Banks

In an apparent move to boost public confidence, the Central Bank of Nigeria (CBN) has denied a media report which claimed it is set to revoke the licenses of Unity Bank, Keystone Bank and Polaris Bank. The apex bank, in a post via its official X account on Tuesday, urged members of the public to dismiss the report as fake news. Sharing a screenshot of the publication, CBN wrote: “This content is fake and not from the Central Bank of Nigeria.” The dismissal of the report comes on the heels of the decision by the CBN to revoke the operating license of Heritage Bank. Meanwhile, the Nigeria Deposit Insurance Corporation (NDIC), has assured customers of banks in the country of the safety of their deposits and investments. The NDIC assured the banking public that banks whose licenses have not been revoked remain safe and sound. It also urged depositors and other stakeholders to continue their banking businesses without fear.

CBN Revokes Heritage Bank License 

The Central Bank of Nigeria (CBN) has announced the revocation of Heritage Bank’s operating licence.  This decision was revealed in a statement by the Acting Director of Corporate Communications, CBN, Hakama Sidi Ali.  Ali stated: “The Central Bank of Nigeria, in accordance with its mandate to promote a sound financial system in Nigeria and exercising its powers under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020, hereby revokes the licence of Heritage Bank Plc with immediate effect.” She explained that the revocation was necessary due to the bank’s violation of Section 12 (1) of BOFIA, 2020. The bank’s management had failed to improve its financial performance, posing a threat to financial stability. “This follows a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline. Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby making the revocation of the licence the next necessary step.” Ali assured the public that this action is aimed at maintaining confidence in the banking system and ensuring the overall soundness of Nigeria’s financial sector. The Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of the bank in line with Section 12 (2) of BOFIA, 2020. “We 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,” Ali concluded.

Why FG may Revoke DisCos Licences – Power Minister

The federal government has threatened tough sanctions, including licence revocation, against Distribution companies over epileptic power supply and ‘wilful non-performance’.  It also said Electricity Distribution Companies (DisCos) are to be held accountable henceforth for poor power supply in the country.  Power Minister, Adebayo Adelabu issued the threat in a statement, describing as “disheartening” the decline in power supply despite the concerted efforts to improve the situation. He noted that his Ministry has been exerting pressure on the GenCos to enhance their performance, resulting in a recent increase in generation to over 4000MW. “Moving forward, I’m committed to holding all distribution companies accountable for their performance. “Wilful non-performance will not be tolerated, and severe consequences, including licence revocation, may be imposed,” the minister said in a statement. Expressing concern over erratic electricity supply, Adelabu has summoned the Abuja Electricity Distribution Company (AEDC), the Ibadan Electricity Distribution Company (IBEDC) and the Transmission Company of Nigeria (TCN) for an emergency meeting on Tuesday. The supply of electricity has dipped across the country in the last three months, due to many reasons, including lack of adequate gas supply, grid breakdown, low supply from Generating Companies (GenCos), the inability of DisCos to wheel supply from GenCos and sabotage.  The minister also expressed concern over the poor performance of the Nigerian Electricity Supply Industry (NESI). Adelabu, who tweeted on his X handle, reiterated the reasons for summoning the AEDC and IBEDC chief executives and the TCN Managing Director. He gave the reason as an attempt to find a plausible solution to the power supply in their zones. “Despite this progress”, the minister said, “certain distribution companies are failing to adequately distribute the power supplied by TCN, while vandalism of power infrastructure exacerbates the problem in regions such as Abuja, Benin, Port Harcourt, and Ibadan. “The purpose of this meeting is to discuss the worsening power supply in their respective regions and to collectively find lasting solutions.” The minister threatened to henceforth hold the DisCos accountable for their performance. He said: “Willful non-performance will not be tolerated, and severe consequences, including license revocation, may be imposed. “Additionally, I have instructed TCN to prioritise repair works on damaged transmission towers and power lines to improve supply in affected regions.” Adelabu recalled that during recent supervisory visits to power-generating plants, he witnessed firsthand the challenges faced by the sector. He spoke of plans to settle outstanding debts to power generation and gas supply companies, which will alleviate the financial strain and contribute to improved generation levels nationwide. Pleading with consumers for understanding, Adelabu said he and his team had been making frantic efforts to tackle the challenges. “I urge electricity consumers to remain patient as we work tirelessly to address these issues and provide better service to all Nigerians,” he said. It was gathered that the payment of $120 million out of the $1.3 trillion owed to the gas suppliers has unsettled the GenCos. The GenCos are said to be meeting to press for the payment of their outstanding debts. A source from the GenCos, who was privy to the meeting, said: “Since the Federal Government has made $120 million payment to the gas suppliers as part of their debt, we are also meeting to ask the same government to settle us, the GenCos.” Adelabu’s Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, confirmed the scheduled meeting with the TCN and DisCos.