CBN Revokes Licences of Aso Savings, Union Homes Over Deepening Financial Troubles

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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 persistent regulatory breaches, weak corporate governance and prolonged financial distress.

In a statement released on Tuesday, the apex bank said the decision followed extensive supervisory reviews which showed that both primary mortgage banks consistently failed to meet critical regulatory requirements, including minimum capital adequacy and liquidity thresholds.

The CBN noted that the affected institutions had remained in a precarious financial condition for years, with assets unable to sufficiently cover liabilities, thereby posing a risk to depositors and the stability of the financial system.

According to the regulator, repeated attempts to restore the banks to sound financial health proved unsuccessful, leaving licence revocation as the final option in line with provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.

Following the action, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as liquidator and is expected to immediately commence the process of paying insured deposits to affected customers in accordance with existing laws.

The CBN reaffirmed its commitment to strengthening the banking and mortgage sectors through strict regulatory enforcement, warning that institutions that fail to comply with prudential guidelines and governance standards will face decisive sanctions.

The move is seen as part of broader efforts by the apex bank to sanitise Nigeria’s financial system and restore confidence in the mortgage banking sub-sector.