By Desire Emmanuel
The Central Bank of Nigeria (CBN) on Tuesday , December 16, revoked the operational licenses of two mortgage banks, Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, citing multiple regulatory violations and financial distress.
The CBN, in a press statement on Tuesday, stated that the action was taken under 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, adding that the move was part of broader efforts to reposition the mortgage sub-sector and enforce compliance with laws and regulations.
The affected institutions were found to have breached various provisions, including failure to meet the minimum paid-up share capital requirement for their license category, having insufficient assets to cover liabilities, being critically undercapitalised, with capital adequacy ratios below the CBN’s minimum requirement.
These two institutions have faced longstanding challenges, including past complaints from depositors, allegations of corporate governance issues, and delisting from the Nigerian Exchange (NGX) in 2024 due to failure to submit audited accounts for over six years.
The revocation means both organisations can no longer operate as licensed financial institutions.
