The Central Bank of Nigeria has withdrawn the licenses of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, citing efforts to strengthen the mortgage sector and ensure compliance with 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 under capitalized, 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 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.
According to Section 2(1) of the Banks and Other Financial Institutions Act (BOFIA) 2020, no entity is permitted to conduct banking operations in Nigeria without proper registration and a valid CBN license. The public can verify all licensed financial institutions on the CBN website at www.cbn.gov.ng.
