JUST IN: CBN revokes Union Homes, Aso Savings’ operating licences

The Central Bank of Nigeria (CBN) has withdrawn the operating licences of Union Homes Savings and Loans Plc and Aso Savings and Loans Plc.

The apex bank announced the decision in a statement issued on Tuesday in Abuja by its Acting Director of Corporate Communications, Hakama Sidi Ali.

According to the CBN, the revocation is part of ongoing efforts to reposition the mortgage sub-sector and ensure strict compliance with applicable laws and regulations.

The bank said the action was taken pursuant to the powers conferred on it 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 institutions violated various provisions of BOFIA 2020 and the Revised Guidelines for Mortgage Banks in Nigeria,” the CBN stated.

It listed the violations to include failure to meet the minimum paid-up share capital requirement for their licensed category; insufficient assets to meet liabilities; critical undercapitalisation with capital adequacy ratios below the prudential minimum prescribed by the CBN; and failure to comply with several regulatory directives and obligations.

The CBN reaffirmed its commitment to its core mandate of maintaining financial system stability in Nigeria.