The Central Bank of Nigeria, CBN, has withdrawn the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc following continuous breaches of banking regulations and failure to satisfy prudential standards.
The central bank stated that this measure forms part of its continuing initiative to restructure the mortgage sector and ensure rigorous adherence to applicable laws and regulatory frameworks.
In a statement released on Tuesday, the CBN confirmed the revocation was executed under its authority granted by Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.
Mrs. Hakama Sidi Ali, Acting Director of the Corporate Communications Department at the CBN, signed the statement.
The regulator disclosed that both institutions violated multiple provisions of BOFIA 2020 and the Revised Mortgage Banking Guidelines, notably their inability to meet the minimum paid-up share capital requirement for their respective licence categories.
The CBN further highlighted that both institutions held insufficient assets to cover their liabilities, describing them as severely undercapitalised with capital adequacy ratios below the regulatory minimum threshold.
Furthermore, the mortgage banks failed to comply with numerous regulatory directives and obligations despite supervisory intervention attempts.
“The affected institutions had violated various sections of BOFIA 2020 and the Revised Guidelines for Mortgage Banks in Nigeria,” the CBN stated.
The regulator emphasised that this action reinforces its responsibility to strengthen the financial system and protect stability, especially within specialised banking areas such as mortgage finance.
“The CBN remains committed to its core mandate of ensuring financial system stability,” the statement concluded.
This revocation represents another regulatory measure designed to enhance oversight within the financial sector as the central bank maintains its enforcement of capital adequacy, risk management, and governance standards across deposit-taking institutions.
