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 was 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.
Offences of Aso Savings, Union Homes
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 banks were critically undercapitalised, with capital adequacy ratios 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.
CBN warns Nigerians against unlicensed banks
Legit,ng reported that the CBN had warned Nigerians against patronising unlicenced microfinance banks, advising the public to consult the its website (cbn.gov.ng) for a list of licensed banks if unsure of a bank’s legal status.
The CBN gave the warning after alerting the public about the illegal operation of Zuldal Microfinance Bank, which was reportedly operating in four states, including Lagos, Kaduna, Kano and Abuja.
The apex bank noted that banks that operate without licences violate section 2(1) of the Banks and Other Financial Institutions Act (BOFIA) 2020, which mandates all entities offering banking services to be duly incorporated and licensed by the CBN.
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.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
