A combined photo of CBN, Union Homes and Aso Savings
By Victory Oghene
The Central Bank of Nigeria, CBN, has revoked the operational licenses of two primary mortgage banks – Aso Savings and Loans Plc as well as Union Homes Savings and Loans Plc.
In a statement issued by the Acting Director, Corporate Communications, Hakama Sidi Ali, on Tuesday, the CBN cited multiple regulatory violations and financial distress.
According to the apex bank, the action was taken 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.
The statement said the move is part of broader efforts to reposition the mortgage sub-sector and enforce compliance with laws and regulations.
It added that the affected institutions were found to have breached various provisions, including failure to meet the minimum paid-up share capital requirement for their license category, among others.
“The CBN remains committed to its core mandate of ensuring financial system stability,” the statement stressed.
It advised depositors and stakeholders to monitor further announcements from the CBN or the Nigeria Deposit Insurance Corporation, NDIC, regarding potential liquidation or resolution processes.
