The Central Bank of Nigeria (CBN) has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, citing persistent regulatory violations and failure to meet statutory requirements.

In a statement, the apex bank said the decision followed prolonged supervisory concerns, including non-compliance with regulatory directives, weak corporate governance, and failure to meet minimum capital requirements expected of primary mortgage banks. According to the CBN, both institutions were critically undercapitalised, posing risks to depositors and the stability of the financial system.

The revocation was carried out in line with the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020, as part of ongoing efforts to strengthen Nigeria’s financial and mortgage sectors.

Following the action, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as liquidator for the affected banks. The NDIC has assured customers that it has commenced the process of reimbursing insured deposits, with payments to be made through depositors’ alternate bank accounts using their Bank Verification Numbers (BVN). Depositors with balances above the insured limit are expected to receive additional payments as assets are realised during liquidation.

The CBN reiterated its commitment to maintaining financial stability and warned that it would continue to take firm action against institutions that fail to comply with regulatory standards. Visit www.jocomms.com for more news.