“CBN TAKES BOLD STEP: LICENCES OF ASO SAVINGS AND UNION HOMES MORTGAGE BANKS REVOKED”
The Central Bank of Nigeria (CBN) has taken a significant step to strengthen the mortgage sub-sector by revoking the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.
This decision, announced in a circular signed by Hakama Ali, Acting Director of the Corporate Communications Department, aims to enhance compliance with existing laws and regulations in the industry.
According to the CBN, the revocation is in line with 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.
The apex bank cited persistent violations of regulatory requirements, failure to meet the minimum paid-up share capital, insufficient assets to cover liabilities, and critically low capital adequacy ratios as reasons for the action.
The Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator and has begun paying insured deposits of up to ₦2 million per depositor, using Bank Verification Numbers (BVN) to identify alternate bank accounts. Depositors with higher balances will receive the remaining amounts as liquidation dividends after asset sales and debt recoveries. The CBN emphasizes its commitment to ensuring financial system stability and safeguarding depositors’ interests.
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