The Central Bank of Nigeria (CBN) has revoked the operational licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc over violations of banking regulations and weak financial positions.
In a press release issued on December 16, 2025, the apex bank said the action was taken as part of its efforts to strengthen and reposition Nigeria’s mortgage sub-sector, while promoting strict compliance with existing laws and regulatory guidelines.
The CBN explained that the decision was made under the powers granted to it by 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 bank, investigations revealed that the affected institutions failed to meet key regulatory requirements. These include the inability to meet the minimum paid-up share capital required for their licence category, insufficient assets to cover their liabilities, and being critically undercapitalised, with capital adequacy ratios falling below the minimum level prescribed by the CBN.
The regulator also noted that both mortgage banks repeatedly failed to comply with several directives and obligations issued by the CBN, despite regulatory interventions.
The Central Bank stressed that the revocation of the licences was necessary to protect the financial system and prevent further risks to depositors and the mortgage sector.
Reaffirming its position, the CBN said it remains committed to its core mandate of ensuring financial system stability and will continue to take decisive actions against institutions that fail to operate within the law.
The statement was signed by Mrs Hakama Sidi Ali, Acting Director, Corporate Communications, Central Bank of Nigeria.
