The Central Bank of Nigeria (CBN) has revoked the operational licenses of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc as part of efforts to strengthen the mortgage sub-sector and enforce compliance with banking regulations.
In a statement posted on Tuesday by the Acting Director of Corporate Communications, Mrs. Hakama Ali, the apex bank said the affected institutions violated several provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Revised Guidelines for Mortgage Banks in Nigeria.
“The breaches included failure to meet the minimum paid-up share capital requirement, insufficient assets to meet liabilities, being critically undercapitalised with a capital adequacy ratio below the prudential minimum, and non-compliance with directives issued by the CBN,” the statement said.
The revocation forms part of the CBN’s ongoing efforts to maintain a safe and reliable banking sector, protect customers’ deposits, and ensure that only financially sound institutions operate in the mortgage market.
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The apex bank emphasised that the action aligns with its mandate to ensure financial system stability and maintain public confidence in the banking sector.
Mortgage banks are financial institutions that provide home loans and other housing finance products and are strictly regulated by the CBN to safeguard customers and ensure the resilience of Nigeria’s financial system.