Sh*ckwaves In Finance: CBN Shuts Down Aso Savings And Loans, Union Homes

The Central Bank of Nigeria (CBN) has officially revoked the operating licenses of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.

The announcement was made on Tuesday in a statement signed by Hakama Sidi Ali, CBN Acting Director of Corporate Communications.

The apex bank stated that the revocations were prompted by repeated regulatory breaches and financial instability at both institutions. The move is part of CBN’s broader effort to strengthen the mortgage subsector and enforce strict compliance with relevant laws and regulations.

According to the CBN, the action is supported by 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 affected banks were found to have committed several violations, including:

• Failing to meet the minimum paid-up share capital required for their license category.

• Maintaining insufficient assets to cover liabilities.

• Being critically undercapitalized, with capital adequacy ratios below the prudential minimum.

• Non-compliance with multiple directives and regulatory obligations.

Additionally, both institutions have long faced operational challenges, including customer complaints, corporate governance concerns, and delisting from the Nigerian Exchange (NGX) in 2024 for failing to submit audited accounts for over six years.