CBN revokes mortgage bank licences of Aso Savings and Union Homes due to undercapitalisation and regulatory breaches to strengthen the sector

The Central Bank of Nigeria (CBN) on Tuesday, December 16, 2025, revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc as part of a renewed effort to sanitise the mortgage sub-sector and enforce strict regulatory compliance.

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The Acting Director of Corporate Communications, Hakama Sidi Ali, said the decision followed persistent breaches that undermined the safety and soundness of the affected institutions and their ability to meet obligations to depositors and stakeholders.

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

She cited insufficient assets to cover liabilities, failure to meet minimum paid-up share capital requirements, critical undercapitalisation, and non-compliance with multiple regulatory directives.

The CBN highlighted that the revocation was intended to strengthen confidence in the mortgage sector and ensure that only institutions capable of operating safely and soundly are allowed to continue business.

Sidi Ali stressed that the apex bank remains resolute in enforcing regulatory standards across all segments of the financial system.

“The Central Bank of Nigeria remains committed to its core mandate of ensuring financial system stability,” she said.

This action follows repeated warnings from the CBN in recent years, urging mortgage operators to improve capitalisation, governance, and compliance with statutory requirements, failure of which would attract decisive supervisory measures.