CBN Revokes Licences of Aso Savings, Union Homes Over Capital, Regulatory Breaches
The Central Bank of Nigeria (CBN) has revoked the operational licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, citing persistent regulatory violations and weak financial positions that undermined their ability to operate as mortgage banks.
The apex bank said the decision was taken in exercise of the powers conferred on it under 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, as part of broader efforts to strengthen and reposition Nigeria’s mortgage sub-sector.
In a statement issued on Tuesday and signed by Mrs. Hakama Sidi Ali, Acting Director of the CBN’s Corporate Communications Department.
CBN disclosed that the affected institutions failed to meet critical prudential and regulatory requirements, making their continued operation unsustainable.
According to the CBN, both Aso Savings and Union Homes breached multiple provisions of BOFIA 2020 and the mortgage banking guidelines, including failure to meet the minimum paid-up share capital required for their respective licence categories.
The banks were also found to have insufficient assets to cover their liabilities, raising concerns about their solvency and ability to protect depositors’ funds.
In addition, the apex bank noted that the institutions were critically undercapitalised, with capital adequacy ratios falling below the prudential minimum prescribed by the regulator. The CBN further cited persistent non-compliance with regulatory directives and supervisory obligations despite repeated interventions.
The CBN said the licence revocation forms part of ongoing efforts to promote discipline, transparency, and compliance within the financial system, particularly in the mortgage banking segment, which plays a critical role in housing finance and economic development.
The apex bank reiterated its commitment to enforcing regulatory standards and ensuring that only sound and well-capitalised institutions operate within Nigeria’s financial system.
“The Central Bank of Nigeria remains committed to its core mandate of ensuring financial system stability,” the statement said.
The revocation is expected to pave the way for further regulatory actions aimed at restoring confidence in the mortgage sub-sector and safeguarding the interests of depositors and other stakeholders.
