On 17 December 2025 the Central Bank of Nigeria (CBN) confirmed the revocation of the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc. The action reflects regulatory efforts to strengthen the mortgage banking sector and enforce compliance with established banking laws and guidelines.
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Regulatory reasons for revocation
The CBN cited multiple compliance failures, including the failure of both institutions to maintain the minimum paid-up share capital required for their licence category, insufficient assets relative to liabilities, and breaches of prudential standards as specified under the Banks and Other Financial Institutions Act 2020 and the Revised Guidelines for Mortgage Banks.
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Deposit insurance and liquidation process
Following the revocation, the Nigeria Deposit Insurance Corporation (NDIC) began the formal process of liquidating both entities. The NDIC will pay insured deposits of up to N2 million per depositor through a system that uses consumers’ Bank Verification Number (BVN) to verify and credit funds. Depositors with balances above the insured limit will receive the insured portion first, with the remainder paid later as liquidation proceeds become available.
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Market stability and next steps
The CBN affirmed that the licence revocations are part of broader efforts to maintain stability in the financial system and protect depositors. The apex bank reiterated its commitment to stringent regulatory oversight and encouraged stakeholders in the mortgage banking space to prioritise compliance and sound financial practices to sustain confidence within the sector.
