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 persistent regulatory violations and failure to meet required prudential standards.
In a regulatory notice released on Monday, the apex bank said the decision followed extensive supervisory reviews and enforcement actions aimed at stabilising Nigeria’s financial system.
According to the CBN, both mortgage banks failed to comply with critical provisions of the Banks and Other Financial Institutions Act (BOFIA), including capital adequacy requirements and corporate governance standards.
The apex bank stated that the revocation was necessary to protect depositors, maintain public confidence, and strengthen the integrity of the mortgage banking sub-sector.
“Withdrawing the licences of non-compliant institutions is part of our commitment to ensuring a sound and resilient financial system,” the CBN noted.
Following the revocation, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as liquidator and will commence the process of reimbursing insured depositors in line with existing regulations.
Industry analysts say the move underscores the CBN’s zero-tolerance stance on regulatory infractions and signals increased scrutiny of financial institutions operating in Nigeria.
The development has sparked concerns among stakeholders in the housing and mortgage sector, particularly as access to long-term housing finance remains a major challenge in the country.
