Wednesday, December 17, 2025 - The Central Bank of Nigeria has withdrawn the operating licences of two mortgage banks as part of steps to strengthen regulation and compliance within the mortgage sub sector.
The apex bank announced the decision in a circular issued on
Tuesday, December 16, and signed by its Acting Director of Corporate
Communications, Hakama Ali. According to the CBN, the move is aimed at
repositioning the mortgage banking space and enforcing adherence to existing
laws and regulatory guidelines.
The affected institutions are Aso Savings and Loans Plc and
Union Homes Savings and Loans Plc. The CBN said the action was taken in line
with its powers under Section 12 of BOFIA 2020 and Section 7.3 of the Revised
Guidelines for Mortgage Banks in Nigeria.
Explaining the decision, the bank stated that the
institutions breached several regulatory requirements. “The affected
institutions had violated various Sections of BOFIA 2020 and the Revised
Guidelines for Mortgage Banks in Nigeria, including: failure to meet the
minimum paid up share capital requirement for the category of the bank licence
granted to them by the CBN, and having insufficient assets to meet their
liabilities.”
The regulator also pointed to deeper financial weaknesses,
noting that the banks were critically undercapitalized and failed to meet
prudential standards. Other infractions listed included a capital adequacy
ratio below the required minimum and non compliance with multiple directives
issued by the CBN.
Reaffirming its position, the central bank added, “The CBN
remains committed to its core mandate of ensuring financial system stability.”
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