CBN Revokes Licenses of Aso Savings and Union Homes Mortgage Banks Over Capital Shortfalls

by Editor.
Dec 16, 2025

Credit:

The Central Bank of Nigeria (CBN) has revoked the operating licenses of two major primary mortgage banks—Aso Savings and Loans Plc and Union Homes Savings and Loans Plc—citing persistent capital shortfalls, critically low adequacy ratios, and repeated non-compliance with regulatory directives.

In a statement signed by Acting Director of Corporate Communications Hakama Sidi Ali (Mrs.), the apex bank said the decision 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.

Violations Identified

Failure to meet minimum paid-up share capital requirements for their license category.
Capital adequacy ratios consistently below prudential thresholds.
Breaches of multiple directives and obligations imposed by the CBN.

The revocation follows years of distress signals. Both institutions had faced trading suspensions on the Nigerian Exchange (NGX), threats of delisting for failing to file audited accounts, and prior regulatory interventions.

The Nigeria Deposit Insurance Corporation (NDIC) has been appointed liquidator, taking immediate possession of assets and records.

Claims Process for Depositors

Verification window: December 16–30, 2025.
Channels: Online via BVN-linked portal or in-person at designated branches.
Coverage: Insured depositors eligible for payouts up to N5 million per individual under the NDIC scheme.
Shareholders: Likely to lose investments after depositors and creditors are settled.

The CBN reaffirmed its commitment to financial system stability, stating the action “re-positions the mortgage sub-sector” and enforces compliance.

Sector Context

Nigeria’s mortgage banking sector, critical for housing finance, has long struggled with undercapitalisation, non-performing loans, and weak governance. Informed observers say the revocation underscores the regulator’s resolve to clean up distressed institutions, but also highlights systemic challenges in mobilising long-term housing finance amid economic pressures.