The Central Bank of Nigeria (CBN) has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, citing serious and persistent violations of regulatory requirements in the mortgage banking sector.
In a statement issued on Tuesday and signed by the Acting Director of the Corporate Communications Department, Hakama Sidi Ali, the apex bank said the action forms part of its broader efforts to strengthen the mortgage sub-sector and enforce strict adherence to banking laws and supervisory standards.
According to the CBN, the decision followed extensive regulatory reviews which revealed that both institutions consistently failed to meet critical prudential and operational benchmarks. The regulator noted that the affected mortgage banks breached several provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Revised Guidelines for Mortgage Banks in Nigeria.
The apex bank explained that the revoked licences were issued under the authority granted by Section 12 of BOFIA 2020 and Section 7.3 of the Revised Mortgage Banking Guidelines, after findings showed that the two institutions were unable to meet the minimum paid-up share capital required for their respective licence categories.
In addition, the CBN disclosed that both Aso Savings and Union Homes had inadequate asset bases to cover their liabilities and were critically undercapitalised, with capital adequacy ratios falling below the prudential thresholds prescribed by the regulator. The institutions were also found to have repeatedly failed to comply with supervisory directives and obligations issued by the CBN.
The regulator stressed that the revocation aligns with its ongoing reforms aimed at restoring stability, transparency and confidence in Nigeria’s mortgage banking industry. It reaffirmed its commitment to taking decisive action against financial institutions that undermine regulatory standards, noting that compliance with capital and governance requirements remains non-negotiable in safeguarding the financial system.
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