The Central Bank of Nigeria (CBN) has withdrawn the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, marking a decisive regulatory intervention in the country’s mortgage banking sector.
The revocation was announced in a statement issued by the Acting Director of the CBN’s Corporate Communications Department, Hakama Sidi-Ali, who said the action forms part of ongoing efforts by the apex bank to sanitise and strengthen the mortgage sub-sector.
According to Sidi-Ali, the licences were revoked in line with the powers granted to the CBN under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020, as well as Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.
She explained that regulatory examinations revealed that both institutions had committed multiple breaches of the relevant laws and supervisory guidelines.
According to the statement, Chief among the infractions was their failure to meet the minimum paid-up share capital required for the category of mortgage banking licences issued to them.
In addition, the banks were found to have insufficient assets to cover their liabilities, leaving them critically undercapitalised, with capital adequacy ratios falling below the prudential thresholds prescribed by the CBN.
Sidi-Ali further disclosed that the affected institutions persistently failed to comply with several regulatory directives and obligations imposed by the apex bank, despite repeated supervisory engagements.
She reaffirmed the CBN’s determination to enforce strict compliance across the financial system, stressing that the regulator would continue to take firm action against institutions that undermine sound banking practices.
“The Central Bank of Nigeria remains resolute in the discharge of its core mandate of safeguarding financial system stability and ensuring a resilient, transparent and compliant banking sector,” she said.
