CBN Revokes Licences of Two Mortgage Banks Over Financial Mismanagement

CBN Revokes Licences of Two Mortgage Banks Over Financial Mismanagement

The Central Bank of Nigeria (CBN) has taken decisive regulatory action by revoking the operating licences of two primary mortgage institutions—Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.

This move, announced on December 16, 2025, marks a significant intervention in Nigeria’s financial sector aimed at safeguarding stability and protecting depositors.

According to the CBN, the revocation was necessitated by persistent regulatory breaches and worsening financial conditions at both institutions. 

The apex bank cited several critical failures, including the inability of the banks to meet the minimum paid-up share capital required for their licence category, weak asset positions that were insufficient to cover liabilities, poor capital adequacy below prudential standards, and repeated non-compliance with regulatory directives.

These shortcomings, the CBN emphasized, posed risks to the integrity of the mortgage banking sector and the broader financial system.

The statement, signed by Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN, underscored that the decision was taken in line with the Banks and Other Financial Institutions Act (BOFIA) 2020 and the revised regulatory framework governing mortgage banks in Nigeria.

The revocation is part of the CBN’s ongoing efforts to strengthen the mortgage banking sector, enhance corporate governance, and ensure depositor protection.

Both Aso Savings and Loans Plc and Union Homes Savings and Loans Plc have faced long-standing operational challenges. These included corporate governance concerns, unresolved customer complaints, and failure to submit audited financial statements for more than six years.

Their delisting from the Nigerian Exchange in 2024 further highlighted their deteriorating financial health and lack of transparency.

With the revocation now effective, the two institutions are no longer authorized to conduct banking operations. The CBN has advised depositors and stakeholders to await further instructions from the Nigeria Deposit Insurance Corporation (NDIC), which will oversee potential resolution or liquidation arrangements.

This development signals a broader message from the CBN: regulatory compliance and financial discipline remain non-negotiable in Nigeria’s banking sector.

The action against these mortgage banks reflects the apex bank’s determination to enforce standards, restore confidence, and protect the financial system from institutions that fail to meet prudential requirements.