The Central Bank of Nigeria (CBN) has revoked the operating licences of two mortgage banks as part of efforts to strengthen regulation and reposition the mortgage sub-sector.
The decision was announced in a circular issued on Tuesday and signed by the Acting Director of the Corporate Communications Department, Hakama Ali. The apex bank said the action was aimed at promoting compliance with applicable laws and regulatory standards.
According to the CBN, the revocation was carried out pursuant to the powers conferred on it 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 affected institutions are Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.
The CBN explained that the banks violated several provisions of BOFIA 2020 and the revised guidelines, including failure to meet the minimum paid-up share capital requirement for their respective licence categories and maintaining insufficient assets to cover their liabilities.
The regulator further cited critical undercapitalisation, with capital adequacy ratios below the prudential minimum prescribed by the CBN, as well as persistent non-compliance with regulatory directives and obligations.
“The CBN remains committed to its core mandate of ensuring financial system stability,” the circular stated.
