The Central Bank of Nigeria (CBN) has revoked the operating licences of Aso Savings and Loans Limited and Union Homes Savings and Loans Plc over persistent regulatory breaches and insolvency concerns.
In a statement released on Tuesday, the CBN said the action was taken in accordance with its powers under the Banks and Other Financial Institutions Act (BOFIA) 2020. It stated that both institutions failed to comply with the obligations imposed by the apex bank despite repeated interventions.
According to the CBN, the affected mortgage banks had been operating in a manner that posed a threat to financial stability and failed to improve their financial positions despite extended forbearance and supervisory steps.
“The revocation of the licences became necessary due to the institutions’ inability to improve their financial performances, which posed risks to depositors’ funds,” the statement read.
The regulator added that the action is part of efforts to sanitise and strengthen the mortgage banking sector, ensuring that only healthy institutions operate within Nigeria’s financial system.
The Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of the two banks, in line with Section 12(3) of the BOFIA 2020. The NDIC will begin the process of repaying insured depositors and managing the winding down of the affected institutions.
The CBN assured depositors that their funds are protected within the limits of the insured amounts and promised a transparent resolution process to minimise disruption in the mortgage finance sector.
