Nigeria’s Apex Bank Revokes Licences of Aso Savings, Union Homes

The Central Bank of Nigeria (CBN) has withdrawn the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.

The apex bank said the decision forms part of broader efforts to reposition the mortgage sub-sector and enforce stricter compliance with existing laws and regulatory standards.

In a statement issued by the CBN’s Acting Director of Corporate Communications, Hakama Sidi-Ali, the regulator said the action was taken in line with powers granted under the Banks and Other Financial Institutions Act (BOFIA) 2020, as well as provisions of the revised guidelines governing mortgage banks in Nigeria.

She said that the affected institutions had violated various sections of both regulations.

According to her, such violations include failure to meet the minimum paid-up share capital requirement for the category of the bank licence granted to them by the CBN.

“Others are, having insufficient assets to meet their liabilities and being critically undercapitalised with a capital adequacy ratio below the prudential minimum ratio as prescribed by the CBN,” she added..

She said that they also failed to comply with several directives and obligations imposed upon them by the CBN.

She said that the CBN remained committed to its core mandate of ensuring financial system stability.

NAN