The Central Bank of Nigeria (CBN) has announced the revocation of operating licenses of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.

In a circular signed by its Acting Director, Corporate Communications Department, Hakama Ali, the apex bank stated that the action was aimed at repositioning the mortgage sub-sector and promoting compliance with relevant laws and regulations.

The CBN said the affected institutions violated several provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Revised Guidelines for Mortgage Banks in Nigeria, including:

Failure to meet the minimum paid-up share capital requirement for their license category.

Possessing insufficient assets to meet liabilities.

Being critically undercapitalised with a capital adequacy ratio below the prudential minimum.

Non-compliance with multiple directives issued by the CBN.

“The CBN remains committed to its core mandate of ensuring financial system stability,” the circular added.

The apex bank stressed that the move aligns with its statutory powers under Section 12 of BOFIA 2020 and Section 7.3 of the Revised Guidelines for Mortgage Banks.