TUE DEC 16 2025-theGBJournal| The Central Bank of Nigeria (CBN) has announced the revocation of the operating licenses of two prominent Savings and Loans Plc companies, the Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, citing multiple regulatory violations and financial distress.
In a circular published today on its website, the apex bank said the action was taken under 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 move is part of broader efforts to reposition the mortgage sub-sector and enforce compliance with laws and regulations.
The CBN, in the statement signed by Hakama Sidi Ali (Mrs.), Acting Director, Corporate Communications, highlighted the breaches as; failure to meet the minimum paid-up share capital requirement for their license category, having insufficient assets to cover liabilities, being critically undercapitalized, with capital adequacy ratios below the CBN’s prudential minimum, as well as for non-compliance with several directives and obligations imposed by the regulator.
The CBN also emphasized its commitment to its core mandate of ensuring financial system stability.
Aso Savings and Loans Plc’s poor earnings in Q3 2025, underpinned by a significant net loss and a deeply negative equity position, reflects its unending challenges.
Union Homes Savings and Loans Plc on its own, has also faced challenges including litigations and being delisted on the NGX.
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