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

The apex bank cited persistent regulatory infractions and deteriorating financial conditions at the two primary mortgage banks.

In a statement issued on Tuesday, the CBN said the decision was taken in line with 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.

According to the CBN, both institutions failed to meet key regulatory requirements, including the minimum paid-up share capital threshold for their licence category.

The regulator also found that the banks’ assets were insufficient to cover their liabilities, exposing depositors and other stakeholders to heightened risk.

The CBN further disclosed that the affected mortgage banks were critically undercapitalised, with capital adequacy ratios falling below the prudential minimum prescribed by the regulator.

In addition, the banks were said to have repeatedly failed to comply with regulatory directives and other statutory obligations.

The statement, signed by the Acting Director of Corporate Communications at the CBN, Hakama Sidi Ali, emphasised that the apex bank “remains committed to its core mandate of ensuring financial system stability.”

With the revocation of their licences, Aso Savings and Loans Plc and Union Homes Savings and Loans Plc are no longer authorised to carry out any banking or mortgage-related activities in Nigeria.

The institutions are effectively barred from accepting new deposits, granting loans, or offering any regulated financial services.

Depositors and other stakeholders are expected to await further directives from the CBN and the Nigeria Deposit Insurance Corporation (NDIC), which will determine the appropriate resolution process, including possible liquidation and the treatment of customer deposits.

Aso Savings and Loans Plc and Union Homes Savings and Loans Plc have faced prolonged operational challenges in recent years.

Aso Savings had previously undergone regulatory intervention amid liquidity constraints and NGX compliance issues.

Its shares on the NGX have been thinly traded in recent years, with mounting concerns over statutory compliance and returns to investors.

In 2017, the CBN reportedly stepped in to supervise remedial restructuring. Subsequent efforts to raise new capital or attract strategic investors were slow to materialise due to legacy liabilities.

Union Homes was among the 14 companies delisted by the NGX in 2024 for failing to meet listing requirements, having failed to submit over six years of audited results and accounts to the Exchange.

The NGX had suspended trading in the shares of Aso Savings and Loans Plc with effect from Wednesday, November 19, 2025, to allow for the seamless execution of its share reconstruction exercise.

The suspension was expected to facilitate reconciliation of records between the company’s registrars and the Central Securities Clearing System Plc (CSCS).