The Central Bank of Nigeria (CBN) has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc over violations of banking regulations.
The apex bank disclosed this in a statement signed by its Acting Director of Corporate Communications, Mrs Hakama Sidi Ali, noting that the action was taken in line with its efforts to reposition the mortgage sub-sector and strengthen regulatory compliance.
According to the CBN, the licence revocation was carried out under the powers granted by 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.
The CBN said investigations revealed that both institutions breached several provisions of BOFIA 2020 and the revised mortgage banking guidelines.
Key infractions cited include failure to meet the minimum paid-up share capital requirement for their licence category, as well as having insufficient assets to meet liabilities..
The apex bank also noted that the affected mortgage banks were critically undercapitalised, with capital adequacy ratios falling below the prudential minimum prescribed by the CBN.
The statement noted that the banks were found to have failed to comply with multiple regulatory directives and obligations issued by the central bank.
The CBN reaffirmed its commitment to safeguarding the stability of Nigeria’s financial system, stressing that it would continue to take decisive actions against institutions that undermine regulatory standards.
