CBN revokes licences of Aso Savings, Union Homes
CBN Building
Abdullateef Fowewe
The Central Bank of Nigeria (CBN) has announced the revocation of operational licenses for Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, citing repeated violations of banking regulations aimed at strengthening the mortgage sector.
In a statement by Hakama Sidi Ali, Acting Director of Corporate Communications, the CBN invoked Section 12 of BOFIA 2020 and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria to take this action.
The move forms part of broader efforts “to re-position the mortgage sub-sector and promote a culture of compliance with relevant laws and regulations.”
According to the statement key infractions that prompted the CBN’s action are that the affected institutions failed to maintain the minimum paid-up share capital required for their license categories.
They also showed insufficient assets to cover liabilities and operated with a capital adequacy ratio well below the CBN’s prudential minimum, rendering them critically undercapitalised.
Compounding these issues, the banks ignored multiple directives and obligations from the regulator.
The CBN emphasised that these measures protect depositors and ensure stability in Nigeria’s financial sector.
The CBN emphasised its ongoing commitment “to its core mandate of ensuring financial system stability” amid these regulatory enforcements.
