The Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) have asked the Federal High Court in Abuja to first determine whether it has the jurisdiction to hear a lawsuit filed by Aso Savings & Loans Plc and Union Homes Savings & Loans Plc over the revocation of their operating licences.
The two regulators raised the objection on Monday during proceedings before Justice Emeka Nwite, arguing that jurisdiction is a threshold issue that must be resolved before any other application can be considered.
The mortgage banks are challenging the recent withdrawal of their licences by the CBN and are seeking court orders to restrain the NDIC from taking further steps, including liquidation, pending the outcome of the case.
CBN’s counsel, Onyeka Ezeah, told the court that the issue of jurisdiction is fundamental and must be addressed first, citing a 2022 Supreme Court ruling which held that courts must resolve jurisdictional questions before entertaining substantive reliefs.
NDIC’s lawyer, Abubakar Shehu, aligned with the CBN’s position, insisting that the corporation acted within its statutory mandate once the licences were revoked. He urged the court to adjourn the matter to allow full arguments on the preliminary objections filed by both defendants.
Counsel to the mortgage institutions, Joseph Silas, argued that the suit was scheduled for the regulators to “show cause” why the court should not restrain them from further action. He warned that continued liquidation steps by the NDIC could cause irreversible damage if the court later finds the licence revocation unlawful.
He maintained that the law grants the affected institutions a 30-day window to challenge the CBN’s decision and urged the court to preserve the status quo to protect both the plaintiffs and their depositors.
Responding, NDIC’s counsel said the agency was acting in the interest of depositors who were unable to access their funds, noting that the law empowers NDIC to step in immediately after licence revocation. He added that shareholders could seek damages if the banks eventually succeed in court.
Justice Nwite, while noting the competing arguments, described jurisdiction as a “threshold issue” and declined to make any interim orders. He adjourned the case until January 21, 2026, for a hearing on the preliminary objections filed by the CBN and NDIC.
The suit, marked FHC/ABJ/CS/2776/2025, was filed by Aso Savings & Loans Plc, Union Homes Savings & Loans Plc, and two individuals against the CBN and NDIC.
