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 breaches that undermined the safety and soundness of the institutions.
CBN
In a statement issued on Tuesday, the Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, said the decision was part of renewed efforts to sanitise the mortgage sub-sector and enforce strict compliance with banking regulations.
According to her, the affected institutions violated several provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Revised Guidelines for Mortgage Banks in Nigeria.
“The institutions failed to meet minimum paid-up share capital requirements, were critically undercapitalised, and did not comply with multiple regulatory directives. They also lacked sufficient assets to cover liabilities,” Sidi Ali said.
She explained that the revocation was intended to strengthen confidence in the mortgage sector and ensure that only institutions capable of operating safely and soundly are allowed to continue business.
The apex bank stressed that it remains resolute in enforcing regulatory standards across all segments of the financial system.
“The Central Bank of Nigeria remains committed to its core mandate of ensuring financial system stability,” Sidi Ali added.
Ravenewsonline reports that the move follows repeated warnings from the CBN in recent years, urging mortgage operators to improve capitalisation, governance, and compliance with statutory requirements.
Industry analysts say the action is expected to reinforce discipline within the mortgage banking segment and restore public trust in the sub-sector, which has struggled with weak capitalisation and governance challenges.
