The Central Bank of Nigeria (CBN) has reportedly revoked the operational licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, in a decisive move to enforce regulatory compliance and strengthen the mortgage banking sub‑sector.
In an official statement signed by Hakama Sidi‑Ali, acting director of Corporate Communications at CBN, 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 and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.
According to the CBN, both institutions consistently breached regulatory requirements and failed to meet prudential standards, including:
Failure to maintain the minimum paid‑up share capital required for their licence categories;
Being critically undercapitalised with assets insufficient to cover liabilities;
Non‑compliance with supervisory directives and multiple breaches of regulatory obligations.
The CBN’s action underscores increased regulatory scrutiny in Nigeria’s financial sector, particularly within mortgage and savings institutions, aimed at reinforcing financial stability and protecting depositors.
Background context:
Over recent years, the Nigerian Exchange and regulators have taken measures against non‑compliant financial institutions, including delisting companies that failed to publish audited accounts, and heightened enforcement across banking and finance sectors, in efforts to strengthen transparency and market confidence.
