The Central Bank of Nigeria (CBN) has revoked the operating licences of two mortgage banks—Aso Savings and Loans Plc and Union Homes Savings and Loans Plc—as part of efforts to reposition the mortgage sub-sector and enforce strict compliance with regulatory standards.
The decision was announced in a circular issued on Tuesday and signed by the Acting Director of the Corporate Communications Department, Hakama Ali. The apex bank said the action was taken in line with its 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 breached several regulatory provisions, including failure to meet the minimum paid-up share capital required for their licence category and inability to maintain sufficient assets to cover liabilities.
Other infractions cited include critical undercapitalisation, with capital adequacy ratios falling below prudential minimum requirements, as well as persistent non-compliance with directives and obligations issued by the regulator.
“The CBN remains committed to its core mandate of ensuring financial system stability,” the bank stated, adding that the move underscores its resolve to strengthen confidence and discipline within the financial system.
