The Central Bank of Nigeria (CBN) has revoked the operational licenses of two mortgage banks—Aso Savings and Loans Plc and Union Homes Savings and Loans Plc—citing violations of regulatory requirements.
In a statement on Tuesday, Hakama Sidi Ali, acting Director of the CBN’s Corporate Communications Department, said the action was part of the apex bank’s effort to strengthen the mortgage sub-sector and enforce compliance with relevant laws.
“Under the powers granted to the CBN by Section 12 of BOFIA 2020 and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria, the licenses of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc have been revoked,” the statement read.
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The CBN noted that both institutions had breached several regulations, including:
- Failing to meet the minimum paid-up share capital requirement for their license category.
- Holding insufficient assets to cover liabilities.
- Being critically undercapitalized, with capital adequacy ratios below the prudential minimum prescribed by the CBN.
- Failing to comply with multiple directives and obligations issued by the central bank.
The CBN reiterated its commitment to maintaining financial system stability and promoting a culture of regulatory compliance across Nigeria’s banking sector.
