The Central Bank of Nigeria (CBN) has officially revoked the operating licenses of two prominent mortgage institutions: Aso Savings and Loans Plc and Union Homes Savings and Loans Plc. This decisive action, announced on Tuesday, December 16, 2025, marks a significant regulatory move aimed at stabilizing the nation’s mortgage sub-sector.
In a formal statement, the apex bank clarified that the revocation was executed under the powers conferred upon it by Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020, as well as Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria. The regulator cited a series of persistent regulatory violations as the primary driver for the license withdrawal.
According to the CBN, both institutions failed to meet the critical financial thresholds required to operate safely within the Nigerian banking system. Specifically, the banks were found to be critically undercapitalized, with their Capital Adequacy Ratios falling well below the prescribed prudential minimum. The regulator noted that neither bank possessed sufficient assets to meet their liabilities, raising serious concerns about their ability to serve depositors and fulfill their core mandates.
Furthermore, the CBN highlighted that the revocation was a necessary response to the banks’ failure to comply with multiple directives and obligations previously issued by the regulator. By failing to meet the minimum paid-up share capital requirements for their specific license categories, the institutions had effectively breached the fundamental conditions of their operation.
The Central Bank emphasized that this enforcement action is part of a broader strategy to reposition the mortgage sector for better performance and to ensure strict adherence to financial laws. As mortgage banks are pivotal in providing housing finance and loans to the public, their stability is inextricably linked to the health of the wider financial system.
The CBN reaffirmed its commitment to its core mandate of maintaining financial system stability and protecting the interests of the banking public. This development serves as a stern warning to other financial institutions regarding the importance of regulatory compliance and fiscal responsibility.
