CBN Revokes Licences of Aso Savings, One Other Bank, Gives Reasons
- CBN has revoked the licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc
- The banks failed to meet capital and asset requirements, among other provisions of BOFIA 2020
- The CBN said the move is to uphold mortgage banking guidelines and to protect financial system stability
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Central Bank of Nigeria (CBN) has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc over violations of banking regulations.
The apex bank disclosed this in a statement signed by its Acting Director of Corporate Communications, Mrs Hakama Sidi Ali, noting that the action was taken in line with its efforts to reposition the mortgage sub-sector and strengthen regulatory compliance.
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According to the CBN, the licence revocation was carried out under the powers granted by 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.
Offenses
The CBN said investigations revealed that both institutions breached several provisions of BOFIA 2020 and the revised mortgage banking guidelines.
Key infractions cited include failure to meet the minimum paid-up share capital requirement for their licence category, as well as having insufficient assets to meet liabilities.
The apex bank also noted that the affected mortgage banks were critically undercapitalised, with capital adequacy ratios falling below the prudential minimum prescribed by the CBN.
The statement noted that the banks were found to have failed to comply with multiple regulatory directives and obligations issued by the central bank.
The CBN reaffirmed its commitment to safeguarding the stability of Nigeria’s financial system, stressing that it would continue to take decisive actions against institutions that undermine regulatory standards.
Africa needs $1.4trn to close housing deficit: Minister
Minister of Housing and Urban Development, Alhaji Ahmed Dangiwa recently said Africa needs about $1.4 trillion to provide an estimated 50 million housing units to close the gap on the continent.
Speaking at the 7th Africa Housing Awards – the Industry End-of-Year Dinner and awards night held in Abuja, the minister urged immediate solutions to the deficit as the continent’s housing deficit could rise to about 130 million units by 2030, Tribune reported.
He said: “Nigeria’s housing deficit is conservatively estimated to be over 17 million units, but we are responding with scale and systems. In the last two years, we have commenced over 10,000 housing units across 14 states and the FCT, and through our urban renewal and slum upgrades efforts, we have already impacted more than 150 communities with critical infrastructure.”
Source: Twitter
Digital platform launched to tackle fraud in housing
Legit.ng earlier reported that the Federal Ministry of Housing and Urban Development (FMHUD) launched a digital platform for Nigerians to report fraud in housing estates, submit evidence, and track complaints.
The platform, developed in collaboration with the EFCC, aims to increase transparency in the housing sector and improve project monitoring through the Contract Performance and Compliance Project Monitoring System (CPCPMS).
Dangiwa, the minister, emphasised that the initiative aligns with the 2012 National Housing Policy, which promotes stricter regulations and protects citizens from dishonest actors.
Source: Legit.ng
