CBN Revokes Operating Licences of Aso Savings and Loans and Union Homes Savings and Loans

The Central Bank of Nigeria (CBN) has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, with effect from December 15, 2025, citing a series of regulatory breaches. These include failure to meet the minimum paid-up share capital requirement, inadequate asset coverage for liabilities, severe undercapitalisation below the prescribed capital adequacy ratio, and persistent non-compliance with CBN regulatory directives.

The decision forms part of the CBN’s broader effort to strengthen the mortgage banking subsector and safeguard the stability of Nigeria’s financial system. The action is grounded in the powers conferred on the regulator under the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Revised Regulatory Guidelines for Mortgage Banks.

Following the licence revocation, the Nigeria Deposit Insurance Corporation (NDIC) has commenced liquidation proceedings for both institutions in line with the NDIC Act 2023. The corporation has also begun the process of verifying and paying insured deposits to affected customers.

Depositors are advised to submit claims through NDIC offices or its designated online platforms. Insured deposits are payable up to a maximum of ₦5 million per depositor per bank, while any uninsured balances and other claims will be settled from the proceeds of asset realisation during the liquidation process.

Overall, the move highlights the regulators’ continued resolve to remove weak and non-compliant institutions from the financial system. While this may enhance long-term confidence in the banking sector, it also draws attention to the structural and macroeconomic pressures facing Nigeria’s mortgage industry, including inflation, rising interest rates, and currency volatility. Stakeholders are encouraged to monitor official communications from the CBN and NDIC for further updates.