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From Adanna Nnamani, Abuja
The Central Bank of Nigeria (CBN) has revoked the operational licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc over regulatory breaches.
In a statement issued by Its Spokesperson, Hakama Ali on Tuesday, the apex bank said the action was taken as part of efforts to reposition the mortgage sub-sector and strengthen compliance with existing laws and regulations.
The CBN said the revocation was carried out in line with the powers conferred on it 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.
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According to the bank, the affected institutions failed to meet key regulatory requirements, including the minimum paid-up share capital for their licence category. It added that the banks also had insufficient assets to cover their liabilities and were critically undercapitalised, with capital adequacy ratios below the prudential minimum prescribed by the CBN.
The apex bank further noted that both institutions failed to comply with several directives and obligations imposed on them by the regulator.
“The CBN remains committed to its core mandate of ensuring financial system stability,” the statement said.
