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CBN Revokes Licences of Aso Savings, Union Homes over Capital, Compliance Breaches
The Central Bank of Nigeria (CBN) has revoked the operational licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, citing persistent violations of regulatory requirements and prudential guidelines governing mortgage banks in Nigeria.
The apex bank disclosed this in a press release issued on Tuesday, stating that the decision was taken in line with its statutory powers 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.
According to the CBN, the affected institutions failed to meet the minimum paid-up share capital requirement for their licence category, had insufficient assets to cover liabilities, and were critically undercapitalised, with capital adequacy ratios falling below the prudential minimum prescribed by the regulator.
The banks were also found to have consistently failed to comply with regulatory directives and obligations issued by the Central Bank, despite repeated supervisory engagements.
Commenting on the development, the Acting Director, Corporate Communications of the CBN, Mrs. Hakama Sidi Ali, said the revocation was part of the apex bank’s broader effort to sanitise the financial system and strengthen the mortgage sub-sector.
“The Central Bank of Nigeria will not hesitate to take decisive regulatory actions against institutions that undermine the stability of the financial system. This step underscores our unwavering commitment to enforcing compliance, protecting depositors, and ensuring a resilient and sound mortgage banking sector,” she stated.
Mrs. Sidi Ali further assured stakeholders that the CBN remains focused on safeguarding financial system stability while promoting transparency, good corporate governance, and sustainable growth across the banking industry.
The CBN reiterated that it will continue to deploy appropriate supervisory measures to ensure that all licensed financial institutions operate within the bounds of existing laws and regulations.
