CBN Withdraws Operating Licences Of Two Banks.

The Central Bank of Nigeria (CBN) has withdrawn the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.

The decision was announced on Tuesday in Abuja through a statement issued by the Acting Director of Corporate Communications at the CBN, Mrs Hakama Sidi Ali.

The apex bank said the move is part of broader efforts to reorganise the mortgage banking sub-sector and ensure strict compliance with existing laws and regulatory requirements.

It explained that the action was taken in accordance with the powers granted under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020, as well as Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.

“The affected institutions violated various provisions of BOFIA 2020 and the Revised Guidelines for Mortgage Banks in Nigeria,” the CBN stated.

According to the regulator, the breaches include failure to meet the minimum paid-up share capital required for their licensed category; inadequate asset levels to cover liabilities; serious undercapitalisation, with capital adequacy ratios falling below the prudential threshold set by the CBN; and failure to comply with several regulatory directives and obligations.

The CBN reaffirmed its resolve to uphold its primary responsibility of maintaining stability within Nigeria’s financial system.