The Central Bank of Nigeria (CBN) has revoked the operational licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc as part of efforts to reposition the mortgage sub-sector and strengthen regulatory compliance.
The announcement was signed by Mrs. Hakama Sidi Ali Acting Director, Corporate Communications, Central Bank of Nigeria.
The apex bank said the action was taken in exercise of its powers under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020 andSection 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.
According to the CBN, the affected institutions breached several provisions of BOFIA 2020 and the Revised Guidelines, including failure to meet the minimum paid-up share capital requirement for their licence categories.
The regulator also cited insufficient assets to meet liabilities, critical undercapitalisation with capital adequacy ratios below the prudential minimum prescribed by the CBN, as well as persistent failure to comply with regulatory directives and obligations.
The CBN noted that the revocation aligns with its commitment to promoting sound corporate governance, financial discipline, and long-term stability within the mortgage banking sub-sector.
Reaffirming its mandate, the apex bank stated that it remains committed to ensuring the safety, stability, and resilience of Nigeria’s financial system.
