The Central Bank of Nigeria (CBN) has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, citing the need to strengthen the mortgage sub-sector and enforce strict compliance with regulatory requirements.
Mortgage banks play a critical role in providing home loans and housing finance products, and are therefore subject to close supervision by the apex bank to safeguard customers’ funds and preserve the stability of Nigeria’s financial system.
In a statement shared on Tuesday via the CBN’s official X handle, the Acting Director of Corporate Communications, Mrs. Hakama Ali, disclosed that the affected institutions were found to be in violation of key provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020, as well as the Revised Guidelines for Mortgage Banks in Nigeria.
According to the CBN, the decision to withdraw the licences forms part of its broader regulatory efforts to ensure a safe, transparent and dependable banking environment, while preventing weak or non-compliant institutions from operating in the mortgage market.
The apex bank listed several infractions committed by the affected lenders, including failure to meet the minimum paid-up share capital requirement, inadequate asset coverage for liabilities, critical undercapitalisation marked by capital adequacy ratios below prudential thresholds, and persistent non-compliance with regulatory directives.
The CBN stressed that the enforcement action was necessary to protect depositors and reinforce market discipline within the financial system, particularly in the housing finance segment, which remains vital to economic growth and urban development.
Reaffirming its regulatory mandate, the apex bank assured the public that it remains committed to maintaining financial system stability and sustaining confidence in Nigeria’s banking sector by promoting a sound, resilient and well-regulated financial environment.
