The Central Bank of Nigeria (CBN) has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, signalling a tougher regulatory stance aimed at cleaning up the mortgage banking sub-sector.
In a circular issued on Tuesday and signed by the Acting Director of Corporate Communications, Hakama Ali, the apex bank said the action was taken under its powers contained in Section 12 of the BOFIA 2020 and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria. The move, the CBN noted, is part of broader efforts to reposition the mortgage industry and enforce compliance with regulatory standards.
According to the CBN, the affected institutions breached multiple provisions of the law, including failure to meet minimum paid-up share capital requirements, operating with insufficient assets to cover liabilities, and remaining critically under-capitalised, with capital adequacy ratios below prudential thresholds.
The banks were also cited for failing to comply with several regulatory directives.
The regulator stressed that the decision aligns with its mandate to safeguard financial stability, reaffirming that institutions unable to meet basic prudential requirements would not be allowed to continue operations.
The development underscores the CBN’s growing resolve to strengthen discipline within Nigeria’s financial system, particularly in vulnerable segments such as mortgage banking.
