Infractions, financial system stability underline revocation of 2 mortgage banks’ licences –CBN

*The Central Bank of Nigeria discloses both Aso Savings and Loans Plc and Union Homes Savings and Loans Plc violated various Sections of BOFIA 2020 and the Revised Guidelines for Mortgage Banks, including undercapitalisation, and insufficient assets to meet their liabilities

Isola Moses | ConsumerConnect

The Central Bank of Nigeria (CBN) has said the recent renovation of operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc was to reposition the mortgage sub-sector, and promote a culture of compliance with relevant industry laws and regulations.

Mrs. Hakama Ali, Acting Director, Corporate Communications Department at CBN, in a circular signed and issued Tuesday, December 16, 2025, noted that the move was part of the Bank’s efforts at repositioning the mortgage sub-sector and promote a culture of compliance with relevant laws and regulations.

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The Bankers’ Bank also cited Section 12 of BOFIA 2020 and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria, which allows it to exercise its powers.

The CBN stated: “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, and having insufficient assets to meet their liabilities.

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“Other violated guidelines include 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.”

The Bank’s circular noted: “The CBN remains committed to its core mandate of ensuring financial system stability.”