The Central Bank of Nigeria (CBN) has revoked the operational licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc as part of ongoing efforts to strengthen the mortgage sub-sector and enforce strict compliance with relevant laws and regulatory standards.

CBN in a statement signed by Ag. Director, Corporate Communications Department, Hakama Sidi Ali, cited persistent breaches of regulatory requirements, weak capital positions and failure to comply with supervisory directives.

The apex bank said the decision, taken under the powers conferred by 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, followed findings that both institutions failed to meet the minimum paid-up share capital requirement for their licence categories, had insufficient assets to cover liabilities and were critically undercapitalised, with capital adequacy ratios below prudential thresholds.

It states: “As part of its efforts to re-position the mortgage sub-sector and promote a culture of compliance with relevant laws and regulations, the Central Bank of Nigeria, in exercise of the powers conferred on it under Section 12 of BOFIA 2020, and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria has revoked the licenses of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.

“The affected institutions had violated various Sections of BOFIA 2020 and the Revised Guidelines for Mortgage Banks in Nigeria, including failure to meet the minimum paid-up share capital requirement for the category of the bank licence granted to them by the CBN. Having insufficient assets to meet their liabilities, being critically undercapitalised with a capital adequacy ratio below the prudential minimum ratio as prescribed by the CBN and failure to comply with several directives and obligations imposed upon them by the CBN.” (This Day)