CBN Cracks Down on Mortgage Banks, Revokes Licences of Two Non-Compliant Firms

CBN Cracks Down on Mortgage Banks, Revokes Licences of Two Non-Compliant Firms

The Central Bank of Nigeria (CBN) has revoked the operational licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc due to persistent regulatory violations and failure to meet prudential standards governing mortgage banks in Nigeria. The decision is part of the CBN’s ongoing efforts to strengthen the mortgage sub-sector and enforce compliance with financial regulations.

In a statement, Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications at CBN, said the revocations followed serious breaches of the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Revised Guidelines for Mortgage Banks. Both banks were found to be undercapitalised, with share capital below minimum requirements, insufficient assets to meet liabilities, and repeated failure to adhere to CBN directives.

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“The CBN remains committed to ensuring financial system stability,” the statement read, emphasizing a zero-tolerance approach to non-compliance and the regulator’s determination to rebuild confidence in the Nigerian mortgage sector.

Following the revocation, the Nigeria Deposit Insurance Corporation (NDIC) has commenced the liquidation process for both banks. The NDIC will compensate insured depositors up to ₦2 million per depositor, in accordance with the provisions of BOFIA. Depositors with balances exceeding ₦2 million will receive the insured portion first, with the remainder paid as liquidation dividends after asset recovery.

The NDIC confirmed that payment of insured deposits has begun, with claims processed online via the NDIC claims portal or in-person at the closed banks’ branches between December 16 and 30, 2025. Depositors are advised to provide proof of account ownership, valid identification, and Bank Verification Numbers (BVN) to facilitate prompt payment.

The NDIC stressed that depositors’ claims will be prioritized over creditors’ claims, ensuring protection for customers affected by the licence revocations and reinforcing confidence in Nigeria’s financial system.

CBN Cracks Down on Mortgage Banks, Revokes Licences of Two Non-Compliant Firms