Chigozirim Okoli
The Central Bank of Nigeria (CBN) has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, two primary mortgage banks in Nigeria.
The revocation, announced on Tuesday, December 16, 2025, through a statement issued by the CBN, which means the institutions are no longer authorised to operate, accept deposits, grant loans, or carry out any banking business in the country.
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According to the CBN, the licences were withdrawn due to the banks’ failure to meet key regulatory and financial requirements. The regulator said the institutions failed to meet the minimum paid-up share capital for their licence category, had assets insufficient to cover liabilities, were critically undercapitalised, and repeatedly breached regulatory directives and supervisory instructions.
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The CBN said the action was taken pursuant to Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Revised Guidelines for Mortgage Banks in Nigeria.
The statement which was signed by Hakama Sidi Ali (Mrs.), Acting Director, Corporate Communications, CBN, said the decision underscores the regulator’s commitment to financial system stability and regulatory compliance.
Aso Savings and Union Homes have faced prolonged operational challenges prior to the revocation. In 2024, both institutions were delisted from the Nigerian Exchange (NGX) after failing to file audited financial statements for more than six years, raising concerns over transparency and corporate governance.
Following the licence withdrawal, depositors are to await further directives from the Nigeria Deposit Insurance Corporation (NDIC), which is responsible for the resolution and liquidation of failed banks, including the payment of insured deposits in line with applicable regulations. The CBN urged stakeholders to rely only on official communications from the CBN and the NDIC.
The apex bank said the move is part of broader efforts to strengthen and reposition Nigeria’s mortgage banking sector by ensuring that only adequately capitalised and well-governed institutions operate within the system.
