Abuja: The Federal High Court in Abuja has declined to grant an interim application seeking to restrain the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) from taking further steps following the revocation of the operating licences of two mortgage institutions—Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.
Delivering a ruling on the plaintiffs’ ex parte motion, Justice Emeka Nwite held that the interests of justice would be better served by putting the defendants on notice rather than granting immediate relief.
“I have listened to the submission of counsel for the plaintiff/applicant, and I have gone through the affidavit evidence, the exhibit, including the written address. I am of the opinion, and I so hold, that the interest of justice will be met by putting the defendants on notice,” the judge ruled.
Accordingly, the matter was adjourned to January 5, 2026, for the defendants to show cause.
The suit, marked FHC/ABJ/CS/2776/2025, was filed by Aso Savings, Union Homes, Ridhwan Hamza, and Ismaila Adamu as plaintiffs against the CBN and NDIC.
In the motion dated December 22 and filed on December 23, 2025, counsel Joseph Silas sought two principal reliefs:
An order restraining the defendants from taking further steps on the licence revocation pending the determination of the motion on notice.
An order barring the enforcement of the revocation decision until the substantive hearing.
Silas argued that the CBN failed to comply with conditions precedent before exercising its powers under the Banks and Other Financial Institutions Act (BOFIA) 2020, while the NDIC prematurely attempted to curtail the institutions’ rights by initiating takeover steps.
In his affidavit, shareholder Ridhwan Hamza acknowledged operational challenges but maintained that the CBN had been duly informed of progress made in recapitalisation efforts.
He noted that the apex bank had earlier directed Aso Savings to conclude share reconstruction activities by August 31, 2025, to address capital shortfalls.
Despite these updates, Hamza said the CBN issued a press release on December 16, 2025, announcing the revocation of both institutions’ licences, citing: failure to meet minimum paid-up share capital requirements; insufficient assets to meet liabilities; critical undercapitalisation below prudential ratios; and non-compliance with directives and obligations.
Hamza contended that the decision was arbitrary, rash, and contrary to public policy, undermining economic development, job creation, and investment confidence. He further alleged that the NDIC had already begun contacting customers to file claims, effectively commencing liquidation before the plaintiffs’ statutory 30-day window to challenge the revocation had elapsed.
Justice Nwite’s ruling requires the defendants to formally respond before any restraining orders can be considered. The case will resume in January, where the CBN and NDIC are expected to justify their actions in court.