The Central Bank of Nigeria (CBN) has revoked the operational licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc as part of its ongoing efforts to strengthen the mortgage sub-sector and enforce compliance with existing regulations.
In a press statement issued on Tuesday, the apex bank said the decision was taken in line with its powers 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.
According to the CBN, the affected institutions were found to have violated several provisions of BOFIA 2020 and the revised regulatory guidelines governing mortgage banks in the country.
Key infractions cited include failure to meet the minimum paid-up share capital required for their respective licence categories, insufficient assets to cover liabilities, and critical undercapitalisation, with capital adequacy ratios falling below the prudential minimum set by the CBN. The banks were also accused of failing to comply with multiple directives and regulatory obligations issued by the apex bank.
The CBN reiterated that the action was necessary to safeguard the integrity of Nigeria’s financial system and ensure stability within the mortgage banking sector.
The statement, signed by the Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, reaffirmed the Central Bank’s commitment to its core mandate of maintaining a sound and stable financial system.
The revocation takes effect immediately.
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