The Central Bank of Nigeria (CBN) has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, effectively ending their status as licensed primary mortgage banks.
In a statement released on Tuesday, the apex bank said the action was prompted by ongoing regulatory breaches and worsening financial conditions at both institutions.
The decision was taken in accordance with the Banks and Other Financial Institutions Act (BOFIA) 2020 and the revised regulatory framework governing mortgage banks in Nigeria.
The CBN explained that the two lenders failed to meet critical requirements, including the minimum paid-up share capital for their licence category.
Other cited issues included weak asset positions insufficient to cover liabilities, poor capital adequacy below prudential standards, and repeated non-compliance with regulatory directives.
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The statement, signed by Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN, emphasized that the move is part of the bank’s ongoing efforts to strengthen the mortgage banking sector and protect the stability of Nigeria’s financial system.
Both Aso Savings and Loans and Union Homes Savings and Loans have faced long-standing operational challenges, including corporate governance concerns and customer complaints.
The two institutions were also delisted from the Nigerian Exchange in 2024 after failing to submit audited financial statements for more than six years.
With the revocation now effective, the banks are no longer authorised to conduct banking operations.
The CBN advised depositors and stakeholders to await further instructions from the Nigeria Deposit Insurance Corporation regarding potential resolution or liquidation arrangements.
