CBN revokes licences of Aso Savings, Union Homes over capital, regulatory breaches

By Johnson Arua 

The Central Bank of Nigeria (CBN) has withdrawn the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, citing serious regulatory and capital deficiencies.

The apex bank announced the decision in a statement issued on Tuesday in Abuja by its Acting Director of Corporate Communications, Mrs Hakama Sidi Ali.

According to the CBN, the move is part of ongoing efforts to strengthen the mortgage sub-sector and enforce strict adherence to applicable laws and regulatory standards.

The CBN said the revocation was carried out under the powers vested in it by Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020, as well as Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.

“The affected institutions were found to have violated several provisions of BOFIA 2020 and the Revised Guidelines for Mortgage Banks in Nigeria,” the statement read.

The apex bank listed the infractions to include failure to meet the minimum paid-up share capital required for their licensed category, inadequate asset base to cover liabilities, and severe undercapitalisation reflected in capital adequacy ratios below the prudential minimum set by the CBN.

Other breaches, it noted, include persistent non-compliance with regulatory directives and obligations issued by the bank.

The CBN stressed that the action underscores its unwavering commitment to safeguarding financial system stability and restoring confidence in Nigeria’s mortgage banking sector.