The Central Bank of Nigeria (CBN) has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.
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The apex bank cited persistent regulatory breaches and deteriorating financial conditions at the two mortgage banks as the basis for its decision. The CBN stated that the revocation was carried out in accordance with 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 failed to meet key regulatory requirements, including the minimum paid-up share capital threshold for their licence category. Their assets were insufficient to cover liabilities, exposing depositors and stakeholders to heightened risk. The banks were critically undercapitalised, with capital adequacy ratios below the prudential minimum set by the regulator. Additionally, both banks repeatedly failed to comply with regulatory directives and statutory obligations.
The statement, signed by the Acting Director of Corporate Communications at the CBN, Hakama Sidi Ali, emphasized that the apex bank “remains committed to its core mandate of ensuring financial system stability.”
With the revocation, Aso Savings and Loans Plc and Union Homes Savings and Loans Plc are no longer authorised to carry out any banking or mortgage-related activities in Nigeria. They are barred from accepting new deposits, granting loans, or offering regulated financial services. Depositors and other stakeholders are expected to await further directives from the CBN and the Nigeria Deposit Insurance Corporation (NDIC), which will determine the resolution process, including possible liquidation and treatment of customer deposits.
Both institutions have faced prolonged operational challenges. Aso Savings previously underwent regulatory intervention due to liquidity constraints and compliance issues with the Nigerian Exchange (NGX). Its shares have been thinly traded, and attempts to raise new capital or attract investors were slowed by legacy liabilities. Union Homes was among 14 companies delisted by the NGX in 2024 for failing to meet listing requirements, including submitting over six years of audited financial statements.
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