The Central Bank of Nigeria (CBN) has revoked the working licences of Aso Financial savings and Loans Plc and Union Properties Financial savings and Loans Plc.
The apex bank cited persistent regulatory infractions and deteriorating monetary circumstances on the two major mortgage banks.
The CBN in an announcement issued on Tuesday, mentioned the choice was taken according to Part 12 of the Banks and Different Monetary Establishments Act (BOFIA) 2020 and Part 7.3 of the Revised Pointers for Mortgage Banks in Nigeria.
Grounds of licence revocation
In response to the CBN, each establishments failed to satisfy key regulatory necessities, together with the minimal paid-up share capital threshold for his or her licence class.
- The regulator additionally discovered that the banks’ property had been inadequate to cowl their liabilities, exposing depositors and different stakeholders to heightened threat.
- The CBN additional disclosed that the affected mortgage banks had been critically undercapitalised, with capital adequacy ratios falling under the prudential minimal prescribed by the regulator.
- As well as, the banks had been mentioned to have repeatedly did not adjust to regulatory directives and different statutory obligations.
The assertion signed by the Appearing Director of Company Communications on the CBN, Hakama Sidi Ali, emphasised that the apex bank “stays dedicated to its core mandate of guaranteeing monetary system stability.”
What this implies
With the revocation of their licences, Aso Savings and Loans Plc and Union Properties Financial savings and Loans Plc are not authorised to hold out any banking or mortgage-related actions in Nigeria.
The establishments are successfully barred from accepting new deposits, granting loans, or providing any regulated monetary companies.
Depositors and different stakeholders are anticipated to await additional directives from the CBN and the Nigeria Deposit Insurance coverage Company (NDIC), which can decide the suitable decision course of, together with potential liquidation and the therapy of customer deposits.
Extra insights
Aso Savings and Loans Plc and Union Properties Financial savings and Loans Plc have confronted extended operational challenges in recent times.
Aso Financial savings had not way back undergone regulatory intervention amid liquidity constraints and NGX compliance points.
Its shares on the NGX have been thinly traded in recent times, with mounting issues over statutory compliance and returns to buyers.
- In 2017, the CBN was reported to have stepped in to oversee remedial restructuring. Subsequent efforts to lift new capital or appeal to strategic buyers had been gradual to materialise because of legacy liabilities.
- Union Properties was among the many 14 corporations delisted by the NGX in 2024 for failing to satisfy their itemizing necessities.
- Particularly, the corporate was mentioned to have did not submit over six years audited consequence and accounts to the Change.
What you need to know
Final month, Nairametrics reported that the NGX had suspended buying and selling within the shares of Aso Savings and Loans Plc with impact from Wednesday, November 19, 2025, to permit for the seamless execution of its share reconstruction train.
The suspension, introduced by the Change, was anticipated to facilitate the reconciliation of information between the corporate’s registrars and the Central Securities Clearing System Plc (CSCS).
In response to the discover issued to buying and selling license holders and the investing public, the suspension was a mandatory compliance measure aimed toward stopping transactions involving Aso Financial savings’ shares whereas restructuring was underway.