CBN revokes licences of Aso Savings, Union Homes over regulatory 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 as part of efforts to strengthen the mortgage sub-sector and enforce compliance with banking regulations.

The apex bank announced the decision in a statement on Tuesday, citing 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 were found to have violated several provisions of BOFIA 2020 and the regulatory guidelines governing mortgage banks.

The infractions included failure to meet the minimum paid-up share capital requirement for their licensed category, inadequate assets to cover liabilities, and critical undercapitalisation with capital adequacy ratios below the prudential minimum prescribed by the bank.

The CBN also noted that both institutions failed to comply with several directives and obligations issued by the regulator.

The apex bank said the revocation was in line with its ongoing efforts to reposition the mortgage banking sub-sector and promote a culture of strict adherence to applicable laws and regulations.

Reaffirming its mandate, the CBN stated that it remains committed to ensuring the stability and soundness of Nigeria’s financial system.

The statement was signed by the Acting Director of the Corporate Communications Department, Mrs. Hakama Sidi Ali.