The Central Bank of Nigeria (CBN) has officially revoked the operating licenses of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.
The announcement was made on Tuesday in a statement signed by Hakama Sidi Ali, the Acting Director of Corporate Communications at the CBN.
According to the apex bank, the decision follows repeated regulatory breaches and persistent financial instability at both institutions. The CBN emphasized that the action is part of broader efforts to strengthen the mortgage sector and ensure strict compliance with banking laws and regulations.
The move is supported 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.
Key issues identified at the two banks include:
* Failure to maintain the minimum paid-up capital required for their license category.
* Insufficient assets to meet their liabilities.
* Critical undercapitalization, with capital adequacy ratios falling below regulatory standards.
* Non-compliance with multiple directives issued by the CBN.
Both institutions have also faced a history of operational challenges, including complaints from depositors, alleged corporate governance lapses, and delisting from the Nigerian Exchange (NGX) in 2024 due to the failure to submit audited financial statements for over six years.
Also Read: Senate President Godswill Akpabio Denies Collapsing, Labels Reports as Fake News
The CBN’s decisive action highlights its commitment to safeguarding depositors’ funds and promoting a more resilient and transparent mortgage banking sector in Nigeria.
