Economy and Business

Heritage Bank: Acquisition better option than licence revocation – Economist

An economist, Prof. Evans Osabuohien, says acquiring Heritage Bank by another investor would have been a better option than outright revocation of its operating licence by Central Bank of Nigeria (CBN).

Osabuohien, who is the Head, Department of Economics, Covenant University, Ota, Ogun, said this in an interview with the News Agency of Nigeria (NAN) on Tuesday.

CBN had, on Monday in Abuja, announced the revocation of the operational licence of the bank.

The apex bank, in a statement by its acting Director of Corporate Communication Department, Sidi Ali, attributed the licence revocation to alleged threats to financial stability in the country.

Osabuohien, however, described revocation of the financial institution’s licence as shocking, adding that this might lead to loss of jobs and ignite tension among customers.

“CBN says that withdrawing the licence was the last option. If not, one would have expected a merger or acquisition, if only for the good of the economy,” he said.

The don urged CBN to re-strategise and strengthen its regulatory framework in the financial sector so as to prevent such crisis in banks in future.

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