The Central Bank of Nigeria has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, citing serious regulatory breaches and prolonged financial weakness.
In a press statement issued on Tuesday, the apex bank said the decision was taken in line with Section 12 of the Banks and Other Financial Institutions Act 2020 and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.
The action, it explained, forms part of ongoing efforts to strengthen the mortgage subsector and enforce strict compliance with regulatory standards.
According to the CBN, both institutions failed to meet key prudential requirements. These included an inability to attain the minimum paid up share capital required for their licence category, inadequate assets to cover existing liabilities, and critical undercapitalisation, with capital adequacy ratios falling below the regulatory minimum.
The banks were also found to have repeatedly ignored directives and obligations issued by the regulator.
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The statement, signed by Hakama Sidi Ali, Acting Director of Corporate Communications, stressed that the apex bank remains firmly committed to safeguarding financial system stability and protecting depositors.
Aso Savings and Loans Plc and Union Homes Savings and Loans Plc have faced persistent challenges in recent years, including complaints from customers, allegations of weak corporate governance and regulatory infractions.
Both institutions were delisted from the Nigerian Exchange in 2024 after failing to submit audited financial statements for more than six years.
With the revocation of their licences, the banks are no longer authorised to operate as financial institutions.
Depositors and other stakeholders have been advised to await further guidance from the Central Bank of Nigeria and the Nigeria Deposit Insurance Corporation on the next steps, including any liquidation or resolution process.
