By 
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 financial mismanagement and repeated regulatory breaches.
The apex bank announced the decision in a statement issued on Tuesday, explaining that the action was taken in line with the Banks and Other Financial Institutions Act (BOFIA) 2020 and the revised regulatory framework for primary mortgage banks in Nigeria.
According to the CBN, the affected institutions consistently failed to meet key prudential and regulatory requirements. These include non-compliance with minimum paid-up share capital thresholds, negative asset positions that left liabilities uncovered, capital adequacy ratios well below prescribed standards, and repeated disregard for regulatory directives.
The statement, signed by the Acting Director of Corporate Communications, Hakama Sidi Ali, said the revocation forms part of the CBN’s broader efforts to strengthen the mortgage banking subsector and safeguard the stability of Nigeria’s financial system.
Both Aso Savings and Loans and Union Homes Savings and Loans have faced long-standing challenges, including weak corporate governance structures and a growing volume of unresolved customer complaints. In 2024, the two institutions were also delisted from the Nigerian Exchange after failing to submit audited financial statements for more than six consecutive years.
With the revocation taking immediate effect, the banks are no longer permitted to carry out mortgage banking operations. The CBN said the move underscores its zero-tolerance stance on financial mismanagement and regulatory non-compliance.
The apex bank advised depositors and other stakeholders to await further guidance from the Nigeria Deposit Insurance Corporation, which will communicate the next steps regarding depositor protection and the resolution process.
Comments