CBN Revokes Licences of Aso Savings, Others Over Regulatory Breaches

By Oluwakemi Kindness

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 and capital deficiencies.

The apex bank took the action under the powers granted by 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.

In a statement issued on Tuesday, the Acting Director of Corporate Communications at the CBN, Hakama Ali, says the affected institutions violated multiple provisions of BOFIA 2020 and the regulatory framework governing mortgage banks.

According to the CBN, the violations include failure to meet the minimum paid-up share capital required for their licence category, as well as maintaining insufficient assets to cover liabilities.

The banks also operated in a critically undercapitalised position, with capital adequacy ratios falling below prudential limits prescribed by the regulator.

In addition, the CBN said both institutions repeatedly failed to comply with regulatory directives and other supervisory obligations, despite several interventions.

The Central Bank reaffirmed its commitment to protecting Nigeria’s financial system, stressing that it will continue to take decisive action against institutions that threaten stability or fail to meet regulatory standards.

“The CBN remains resolute in safeguarding the soundness of regulated financial institutions and maintaining confidence in the Nigerian financial system,” the statement says