Abuja — The Central Bank of Nigeria (CBN) has wielded the regulatory axe on two long-standing primary mortgage banks, Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, revoking their operating licences over deep-seated financial and governance breaches.
In a statement issued on Tuesday, the apex bank said the decision was taken pursuant to 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 a sweeping move to sanitise and reposition the mortgage sub-sector.
According to the CBN, the affected institutions repeatedly fell short of regulatory standards, including failure to meet minimum paid-up share capital requirements, insufficient assets to cover liabilities, and critical undercapitalisation, with capital adequacy ratios well below prudential thresholds. The banks were also cited for persistent non-compliance with supervisory directives.
“The CBN remains committed to its core mandate of ensuring financial system stability,” the regulator said in the statement signed by Hakama Sidi Ali (Mrs.), Acting Director of Corporate Communications, underscoring that the action was taken in the interest of depositors and the wider financial system.
The revocation caps years of turbulence for both lenders. Industry watchers recall longstanding complaints from depositors, allegations of corporate governance lapses, and their delisting from the Nigerian Exchange (NGX) in 2024 after failing to submit audited financial statements for more than six years—red flags that had intensified regulatory scrutiny.
With the licences withdrawn, Aso Savings and Union Homes cease to operate as licensed financial institutions with immediate effect. The CBN advised depositors and stakeholders to await further guidance from the Nigeria Deposit Insurance Corporation (NDIC) on the next steps, including possible liquidation or resolution arrangements.
The decisive move signals the regulator’s zero-tolerance stance on weak balance sheets and lax compliance, as it tightens the screws to restore confidence and stability in Nigeria’s mortgage banking landscape.
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