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 persistent regulatory violations, weak financial positions and prolonged non-compliance with supervisory requirements.
The decision was announced in a press release issued on Monday by the apex bank, stating that the action was taken in line with 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. According to the CBN, the move forms part of broader efforts to sanitise, reposition and strengthen Nigeria’s mortgage banking sub-sector.
In the statement signed by the Acting Director of Corporate Communications, Hakama Sidi Ali (Mrs.), the CBN said the affected institutions had consistently failed to meet regulatory standards despite repeated supervisory interventions.
“The CBN remains committed to its core mandate of ensuring financial system stability,” the statement said, adding that decisive regulatory actions would continue to be taken against institutions that pose risks to depositors and the wider financial system.
The apex bank listed several infractions committed by the two primary mortgage banks, including failure to meet the minimum paid-up share capital requirement applicable to their licence category. The institutions were also found to have insufficient assets to adequately cover their liabilities, raising concerns about their solvency and ability to meet obligations to depositors.
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In addition, both Aso Savings and Loans Plc and Union Homes Savings and Loans Plc were described as being critically undercapitalised, with capital adequacy ratios falling below the prudential minimum set by the CBN. The regulator also cited repeated non-compliance with directives and other regulatory obligations issued over time.
Industry observers note that the challenges facing the two institutions are not new. Both mortgage banks have struggled for years with operational and governance issues, attracting complaints from depositors and stakeholders. They were delisted from the Nigerian Exchange (NGX) in 2024 after failing to submit audited financial statements for more than six years, a development that further eroded investor confidence.
The revocation of their licences means that the two institutions can no longer operate as licensed financial entities or carry out mortgage banking business in Nigeria. The CBN advised depositors, creditors and other stakeholders to await further communication from the relevant authorities.
It is expected that the Nigeria Deposit Insurance Corporation (NDIC) will play a key role in the resolution process, including possible liquidation, repayment of insured deposits and management of claims, in line with existing banking resolution frameworks.
The development underscores the CBN’s renewed resolve to enforce compliance across the financial sector, particularly as it seeks to build a more resilient and transparent mortgage banking industry capable of supporting Nigeria’s housing and economic development needs.
