The Central Bank of Nigeria (CBN) has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc over persistent regulatory breaches and deep financial weakness.
In a statement issued on Monday, December 16, 2025, the apex bank said the decision was taken 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 action, the CBN noted, is part of ongoing efforts to sanitise and strengthen the mortgage banking sub-sector.
According to the regulator, the two primary mortgage banks failed on several critical fronts, including their inability to meet the minimum paid-up share capital required for their licence category. The CBN also found that their assets were insufficient to cover existing liabilities and that both institutions were severely undercapitalised, with capital adequacy ratios far below prudential thresholds.
The statement further cited repeated non-compliance with regulatory directives and obligations as key factors behind the licence withdrawal.
“The CBN remains committed to its core mandate of ensuring financial system stability,” the statement, signed by Hakama Sidi Ali (Mrs.), Acting Director of Corporate Communications, said.
Both institutions have struggled for years, facing complaints from depositors, allegations of poor corporate governance and eventual delisting from the Nigerian Exchange in 2024 after failing to submit audited financial statements for more than six years.
With the revocation now in effect, Aso Savings and Loans Plc and Union Homes Savings and Loans Plc are no longer authorised to operate as licensed financial institutions. The CBN advised depositors and other stakeholders to await further guidance from the Nigeria Deposit Insurance Corporation (NDIC) on possible resolution or liquidation processes.