The Federal High Court in Abuja has declined to grant an application seeking to restrain the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) from taking further actions following the revocation of the operating licences of two mortgage institutions—Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.
Justice Emeka Nwite, in a ruling delivered on Tuesday, held that the interest of justice would be better served by putting the defendants on notice rather than granting the ex parte application filed by the plaintiffs.
“I have listened to the submission of counsel for the plaintiff/applicant and carefully examined the affidavit evidence, exhibits, and written address. I am of the opinion, and I so hold, that the interest of justice will be met by putting the defendants on notice,” the judge ruled.
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Justice Nwite, who is sitting as the vacation judge, accordingly ordered the defendants to appear and show cause why the reliefs sought should not be granted. The matter was adjourned until January 5, 2026, for a hearing.
The suit, marked FHC/ABJ/CS/2776/2025, was filed by Aso Savings and Loans Plc, Union Homes Savings and Loans Plc, Ridhwan Hamza, and Ismaila Adamu as first to fourth plaintiffs, respectively. The CBN and NDIC are listed as the first and second defendants.
In the motion dated December 22 and filed on December 23 by the plaintiffs’ counsel, Joseph Silas, the applicants sought two reliefs:
an order restraining the defendants from taking further steps on the revocation of the operational licences of the first and second plaintiffs pending the hearing and determination of the motion on notice; and
an order barring the defendants from enforcing the alleged unlawful decision against the mortgage institutions pending the determination of the motion.
Arguing the application on four grounds, Silas contended that the CBN failed to follow the conditions precedent required before exercising its powers to revoke the operating licences of the two institutions. He further argued that the NDIC acted prematurely by attempting to take over the institutions without allowing them to exhaust their legal remedies.
“If the defendants are not restrained, they will impose their unlawful decisions on the plaintiffs in an irreversible manner. It is therefore necessary, in the interest of justice, to restrain the defendants from taking any further steps,” Silas submitted.
In an affidavit supporting the motion, Ridhwan Hamza, a shareholder of Aso Savings and the third plaintiff, acknowledged that the institutions had operational challenges known to the CBN. However, he stated that the apex bank issued Aso Savings an ultimatum to meet its minimum capital requirement by concluding all share reconstruction activities no later than August 31, 2025.
Hamza said that despite positive updates provided to the CBN, the apex bank, in a press release dated December 16, 2025, titled “Revocation of the Operational Licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc,” relied on Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 7.3 of its Revised Guidelines for Mortgage Banks to revoke the licences.
According to him, the CBN cited the following reasons: failure to meet the minimum paid-up share capital requirement; insufficient assets to meet liabilities; critical undercapitalisation with capital adequacy below the prudential minimum; and failure to comply with regulatory directives.
He maintained, however, that the CBN was fully aware of the steps and progress made by Aso Savings toward meeting its capital requirements and alleged that the revocation did not comply with Section 34(4) of BOFIA 2020.
Hamza further accused the NDIC of sending messages to customers of Aso Savings to submit online claims, despite the law allowing the institutions a 30-day window to challenge the revocation.
He argued that the actions of the defendants were arbitrary, unreasonable, and contrary to public policy, adding that they infringed on the constitutional rights of the plaintiffs to fair hearing.
Hamza stated that the defendants would not be prejudiced if the application were granted and urged the court to intervene in the interest of justice.
ASHENEWS recalls that the CBN revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc on December 16.
