CBN revokes operating licences of Aso Savings and Loans Plc, Union Homes Savings and Loans Plc

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 breaches and deep-seated financial weaknesses at the two primary mortgage banks.

The decision was announced in a press release issued on Tuesday by the the Acting Director, Corporate Communications if CBN, Hakama Sidi Ali.

The apex bank stated that the action was taken in line with 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.

According to the CBN, the move forms part of wider efforts to sanitise and reposition Nigeria’s mortgage banking sub-sector while ensuring strict compliance with prudential rules and regulatory standards.

Findings by the regulator revealed that both institutions failed on several critical fronts, including their inability to meet the minimum paid-up share capital required for their licence category.

The banks were also found to have insufficient assets to cover liabilities, leaving them financially exposed and unable to meet obligations as they fell due.

In addition, the CBN disclosed that the institutions were critically undercapitalised, with capital adequacy ratios falling below the prudential minimum, alongside repeated non-compliance with supervisory directives issued by the regulator.

Emphasising the rationale behind the decision, the CBN, in a statement signed by Hakama Sidi Ali (Mrs.), Acting Director, Corporate Communications, said: “The CBN remains committed to its core mandate of ensuring financial system stability.”

Both Aso Savings and Union Homes have battled longstanding operational challenges.

Over the years, they have faced complaints from depositors, allegations of weak corporate governance, and regulatory scrutiny. In 2024, the two institutions were delisted from the Nigerian Exchange (NGX) after failing to submit audited financial statements for more than six years.

With the revocation now in effect, the banks can no longer operate as licensed financial institutions.

The CBN advised depositors and other stakeholders to await further guidance from the apex bank and the Nigeria Deposit Insurance Corporation (NDIC) on the next steps, including possible liquidation or resolution arrangements.