The Central Bank of Nigeria (CBN) has revoked the operating licences of two primary mortgage banks, Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, citing persistent regulatory violations and severe financial distress.

In a press release on Tuesday, the apex bank stated that the action was taken under 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 move is part of ongoing efforts to sanitize and strengthen the mortgage banking sector and enforce strict compliance with regulatory requirements.

The CBN disclosed that both institutions failed to meet critical prudential standards, including the minimum paid-up share capital required for their licence category. They were also found to be critically undercapitalised, with capital adequacy ratios below the regulatory minimum, and had insufficient assets to cover their liabilities.

Additionally, the banks had repeatedly failed to comply with supervisory directives and regulatory obligations issued by the apex bank.

“The CBN remains committed to its core mandate of ensuring financial system stability,” the statement read.

Both Aso Savings and Union Homes have faced longstanding challenges, including complaints from depositors, allegations of poor corporate governance, and lack of transparency. They were delisted from the Nigerian Exchange (NGX) in 2024 after failing to submit audited financial statements for over six years.

With the revocation, the two mortgage banks are no longer permitted to operate as licensed financial institutions in Nigeria. The CBN advised depositors and stakeholders to follow directives from the Nigeria Deposit Insurance Corporation (NDIC), which will outline steps regarding liquidation or other resolution processes.