• Nigeria’s central bank revokes licences of Aso Savings, Union Homes

• CBN cites persistent regulatory breaches, undercapitalisation, governance failures

• NDIC begins liquidation; insured depositors covered up to 2 million naira

The Central Bank of Nigeria (CBN) has revoked the operating licences of two mortgage lenders, Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, citing persistent regulatory breaches.

In a statement issued on Tuesday, December 16, 2025, the regulator said the two institutions had repeatedly failed to comply with rules governing primary mortgage banks. It said the lenders breached multiple provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 as well as prudential guidelines specific to the mortgage sector.

According to the CBN, both banks operated with capital levels below the regulatory minimums required for their licence category. Their assets were insufficient to meet liabilities to depositors and other creditors, and they failed to comply with several supervisory directives relating to capital adequacy, corporate governance, and risk management.

The central bank said the licence revocations were intended to safeguard the stability of the financial system and protect depositors, adding that adherence to regulatory requirements remains mandatory for all banking institutions.

Following the revocations, the Nigeria Deposit Insurance Corporation (NDIC), the country’s deposit insurance agency, has commenced liquidation proceedings against the two lenders. Under current law, insured depositors will be paid up to 2 million naira per depositor. Customers with balances above this threshold will first receive the insured amount, with any remaining funds to be paid later as liquidation dividends, subject to the sale of the banks’ assets and the recovery of outstanding loans. The NDIC noted that the timeline for this process will depend on asset recovery.

The move forms part of a broader regulatory effort to clean up Nigeria’s mortgage banking sector and strengthen compliance with prudential standards. The country currently has around 30 primary mortgage banks under the direct supervision of the CBN, which play a key role in housing finance.

For industry participants, the decision underscores the regulator’s expectation that mortgage banks strengthen their capital base, improve governance practices, and comply fully with supervisory requirements. For investors, the action sends a mixed signal: while regulatory risk remains a factor, the CBN’s intervention may ultimately bolster confidence by addressing structural weaknesses in the sector.

Chamberline Moko