Regulatory Hammer Falls as CBN Revokes Licenses of Two Mortgage Banks
The Central Bank of Nigeria (CBN) has withdrawn the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, bringing an end to their activities as licensed primary mortgage banks.
In a statement released on Tuesday, the apex bank said the decision followed persistent regulatory breaches and deteriorating financial conditions at the two institutions. The action was taken in line with the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020, as well as the revised regulatory framework guiding mortgage banks in Nigeria.
According to the CBN, the affected lenders failed to satisfy key requirements, including the minimum paid-up share capital threshold for their licence category. The regulator also cited weak asset positions that were inadequate to cover liabilities, poor capital adequacy levels below prudential standards, and repeated non-compliance with regulatory directives.
The statement, signed by Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN, noted that the move forms part of ongoing efforts to strengthen the mortgage banking sub-sector and safeguard the stability of the financial system.
Both institutions have struggled with long-running operational challenges, including corporate governance concerns and complaints from customers. They 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 in effect, Aso Savings and Loans Plc and Union Homes Savings and Loans Plc are no longer authorised to carry out banking operations. The CBN advised depositors and other stakeholders to await further guidance from the Nigeria Deposit Insurance Corporation on the next steps, including possible resolution or liquidation arrangements.
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