CBN Revokes Licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc Amid Severe Financial Distress

The Central Bank of Nigeria (CBN) has revoked the operating licences of two longstanding primary mortgage institutions, Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, due to persistent regulatory violations and acute insolvency.

In a statement dated December 16, 2025, the CBN announced that the revocation, effective December 15, 2025, was executed 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 action is intended to reposition the mortgage sub-sector and promote stricter compliance with financial regulations.

The institutions were cited for multiple breaches, including:

- Failure to meet the minimum paid-up share capital requirement for their licence category;

- Insufficient assets to cover liabilities;

- Critical undercapitalisation, with capital adequacy ratios below the prescribed prudential minimum; and

- Non-compliance with various CBN directives and obligations.

As at December 31, 2024, Aso Savings and Loans Plc was in dire financial condition, reporting accumulated losses of ₦117.55 billion, with total liabilities exceeding assets by ₦59.56 billion. 

Related Developments on the Nigerian Exchange (NGX):

-Union Homes Savings and Loans Plc was delisted from the NGX effective January 31, 2025, alongside Tourist Company of Nigeria Plc, for operating below required listing standards under Clause 14 of the Amended General Undertaking for Listing.

Aso Savings and Loans Plc experienced a series of trading status changes in recent months. A long-standing suspension imposed in July 2017 for failure to submit financial accounts was lifted on October 21, 2025, after the company filed all outstanding reports. However, trading was suspended again effective November 19, 2025, to facilitate a seamless share reconstruction exercise and allow reconciliation of records between the company's registrars and the Central Securities Clearing System Plc (CSCS). This precautionary measure prevented transactions in the shares during the restructuring process.

Following the licence revocation, the Nigeria Deposit Insurance Corporation (NDIC) was appointed liquidator under Section 12(2) of BOFIA 2020. Liquidation has begun in line with Section 55(1) and (2) of the NDIC Act 2023.