CBN Cracks Down on Mortgage Banks, Revokes Aso Savings, Union Homes Licences
By Nasir Dambatta
In a decisive move to sanitise Nigeria’s mortgage sub-sector, the Central Bank of Nigeria (CBN) has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, citing grave regulatory breaches and persistent non-compliance.
The apex bank said the action, 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, forms part of its broader effort to reposition the mortgage industry and enforce a culture of strict regulatory discipline.
According to the CBN, both institutions failed critical prudential and operational tests required to safeguard depositors and ensure financial system stability. Chief among the infractions was their failure to meet the minimum paid-up share capital required for their licensed category, a fundamental requirement for continued operation in the sector.
The regulator further disclosed that the affected mortgage banks were financially distressed, with insufficient assets to cover their liabilities, raising serious concerns about their solvency and ability to meet obligations to customers and counterparties. Both banks were also found to be critically undercapitalised, recording capital adequacy ratios below the prudential minimum prescribed by the CBN.
Compounding these weaknesses was what the apex bank described as persistent disregard for regulatory directives, despite repeated supervisory interventions and obligations imposed on the institutions to correct their deficiencies.
“The revocation underscores the CBN’s zero tolerance for weak governance, undercapitalisation, and regulatory disobedience,” the bank said, reaffirming its commitment to protecting depositors and strengthening confidence in the financial system.
The CBN stressed that the decision sends a clear signal to operators across the financial services industry that compliance with laws, prudential standards, and supervisory directives is non-negotiable.
The announcement was signed by Mrs. Hakama Sidi Ali, Acting Director, Corporate Communications Department, who reiterated that the apex bank remains firmly committed to its core mandate of ensuring financial system stability and soundness.
Analysts say the move could mark a turning point for Nigeria’s mortgage sector, as the CBN tightens oversight to weed out weak players and restore credibility to housing finance in the country.
