In a decisive move to enforce regulatory standards, the Central Bank of Nigeria (CBN) has withdrawn the operating licenses of two prominent mortgage banks. The action, announced on Tuesday, December 16, 2025, targets Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.
Regulatory Crackdown on Mortgage Institutions
The apex bank made the announcement via a circular signed by its Acting Director of Corporate Communications, Hakama Ali. The CBN stated that this step is part of a broader initiative to strengthen oversight and ensure compliance within the mortgage banking sub-sector. The primary goal is to reposition the industry and enforce strict adherence to existing laws and guidelines.
Reasons Behind the License Revocation
The regulator exercised its powers 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 CBN cited multiple and serious violations by the two institutions as the reason for the drastic measure.
The key infractions identified include:
- Failure to meet the minimum paid-up share capital requirement for their specific license category.
- Possessing insufficient assets to cover their liabilities.
- Being critically undercapitalized and failing to meet prudential standards.
- Maintaining a capital adequacy ratio below the mandatory minimum.
- Non-compliance with several directives previously issued by the Central Bank.
CBN Reaffirms Commitment to Financial Stability
In its statement, the CBN strongly reaffirmed its core mandate. "The CBN remains committed to its core mandate of ensuring financial system stability," the circular emphasized. This action signals the bank's unwavering stance on cleaning up the sector and protecting depositors' interests by removing entities that pose a risk due to weak financial standing and poor regulatory compliance.
The revocation of these licenses marks a significant moment in Nigeria's mortgage banking landscape, underscoring the regulator's intent to apply stricter supervision and uphold the integrity of the financial system.
