CBN revokes operating licenses of Aso Savings, Union Homes

Omeiza Bilal

The Central Bank of Nigeria (CBN) has revoked the operational licenses of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.

In a statement signed by Ag. Director, Corporate Communications Department, Hakama Sidi Ali (Mrs.), the Apex stated that the action became necessary the violation of various Sections of BOFIA 2020 and the Revised Guidelines for Mortgage Banks in Nigeria by the affected institutions.

The regulator listed the violations to include: Failure to meet the minimum paid-up share capital requirement for the category of the bank licence granted to them by the CBN; Having insufficient assets to meet their liabilities; 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.

“As part of its efforts to re-position the mortgage sub-sector and promote a culture of

compliance with relevant laws and regulations, the Central Bank of Nigeria, in exercise of the powers conferred on it under Section 12 of BOFIA 2020, and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria has revoked the licenses of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc,” the Apex Bank said.

The CBN assured Nigerians that it remains committed to its core mandate of ensuring financial system stability.