Connect with us


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 our reporter on Tuesday.

It was reported that 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.

Ige Adekunle

NEWSVERGE, published by The Verge Communications is an online community of international news portal and social advocates dedicated to bringing you commentaries, features, news reports from a Nigerian-African perspective. A unique organization, founded in the spirit of Article 19 of the Universal Declaration of Human Rights, comprising of ordinary people with an overriding commitment to seeking the truth and publishing it without fear or favour. The Verge Communications is fully registered with the Corporate Affairs Commission of the Federal Republic of Nigeria as a corporate organization.



Shell Digital Plan RESPONSIVE600x750
Shell Digital Plan RESPONSIVE600x750