CBN revokes licenses of two banks
The Central Bank of Nigeria has revoked the licenses of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.
The move is aimed at strengthening the mortgage sector and ensuring that banks operate according to existing laws and regulations.
According to the central bank, the two institutions failed to meet several requirements, including maintaining the minimum paid-up capital required for their type of license and having enough assets to cover their liabilities.
They were also found to be critically undercapitalized, with a capital adequacy ratio below the level set by the CBN, and did not follow multiple directives issued to them.
The bank also alerted the public that Zuldal Microfinance Bank Limited is not authorized to operate in the country.
According to the CBN, the bank does not hold any licence to carry out microfinance or banking activities in Nigeria.
The CBN said the bank claims to have branches in Lagos, Abuja, Kaduna, and Kano, and falsely asserts that it is licensed to provide microfinance services.
The central bank warned people to avoid any financial dealings with the institution, noting that any transactions conducted with it would be at the individual’s own risk.
Under Section 2(1) of the Banks and Other Financial Institutions Act (BOFIA) 2020, no entity is allowed to run banking operations in Nigeria without being properly registered and holding a valid CBN licence.
Members of the public can verify the list of all licensed financial institutions through the CBN website at www.cbn.gov.ng.
