Court Summons CBN, NDIC Over Controversial Revocation Of Aso Savings, Union Homes Licences

Justice Emeka Nwite issued the directive while delivering a ruling on an ex parte application filed by the affected mortgage institutions and other plaintiffs. The motion was argued by their counsel, Joseph Silas. Although the court declined to grant an immediate order stopping the regulators from acting, the judge ruled that the interest of justice would be better served by placing the CBN and NDIC on notice.

Justice Nwite stated that after carefully considering the submissions of counsel, the affidavit evidence and accompanying exhibits, it was appropriate for the defendants to be given the opportunity to respond. He consequently ordered the regulators to appear before the court and show cause why the reliefs sought by the plaintiffs should not be granted.

The matter was adjourned to January 5, 2026, for the CBN and NDIC to present their arguments. The plaintiffs in the suit include Aso Savings, Union Homes, and two individuals, Ridhwan Hamza and Ismaila Adamu.

In the application before the court, the plaintiffs are seeking orders restraining the defendants from taking any further steps regarding the revocation of their licences pending the hearing of a substantive motion. They are also asking the court to bar the regulators from enforcing what they described as an unlawful decision against the two mortgage banks.

While moving the application, Silas argued that the CBN failed to comply with statutory conditions required before exercising its powers to revoke the licences. He further contended that the NDIC acted prematurely by attempting to take over the institutions without allowing them to exhaust their legal rights to challenge the decision.

In an affidavit supporting the application, Hamza, identified as a shareholder in Aso Savings, acknowledged that the institutions had operational challenges but maintained that the CBN was fully aware of ongoing efforts to address them. He claimed that the regulator issued an ultimatum requiring Aso Savings to meet its minimum capital threshold by August 31, 2025, following the conclusion of its share reconstruction process.

Hamza also stated that despite providing updates to the CBN on December 16, 2025, the regulator proceeded to revoke the licences, citing provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 and its revised mortgage banking guidelines. He noted that the CBN based its decision on alleged capital inadequacy, insufficient assets to meet liabilities, and failure to comply with regulatory directives.

However, Hamza insisted that the CBN was aware of the steps taken by Aso Savings to successfully raise its minimum capital. He further accused the regulator of acting arbitrarily and without regard to public interest, arguing that the revocation violated the provisions of BOFIA and undermined economic growth, job creation, and investment confidence.

The affidavit also alleged that the NDIC had begun contacting customers of Aso Savings to file claims, a move the plaintiffs described as an attempt to commence liquidation and extinguish their right to challenge the revocation within the legally permitted timeframe.

The plaintiffs maintained that the actions of both regulators infringed on their constitutional right to fair hearing, urging the court to intervene to prevent irreversible consequences pending the determination of the suit.