CBN and NDIC Challenge Court Jurisdiction in Aso Savings & Union Homes License Revocation Dispute
The Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) have asked the Federal High Court in Abuja to decline jurisdiction in a lawsuit filed by Aso Savings & Loans Plc and Union Homes Savings & Loans Plc. The institutions are contesting the revocation of their operating licenses, a regulatory action that has triggered liquidation proceedings and stirred concerns about depositor protection.
During proceedings on Monday before Justice Emeka Nwite, both regulators raised preliminary objections, arguing that the court lacks the authority to entertain the suit. CBN counsel, Onyeka Ezeah, emphasized that jurisdiction is “the lifeline of a case,” citing a 2022 Supreme Court ruling to support the position that jurisdictional questions must be resolved before any substantive matters are considered. NDIC’s lawyer, Abubakar Shehu, echoed the argument, highlighting that the corporation is acting strictly within its statutory mandate.
On the other hand, the mortgage banks’ legal team, led by Joseph Silas, argued that the affected institutions are entitled to a 30-day window under the law to challenge the revocation. Silas warned that allowing the NDIC to proceed with liquidation could cause irreversible harm if the court later rules that CBN’s actions were unlawful. He urged the court to maintain the status quo until the substantive suit is fully resolved.
The regulators opposed this request, insisting that the NDIC has the authority to step in immediately after a license revocation to safeguard depositors who can no longer access their funds. Justice Nwite noted that jurisdiction is a threshold issue and postponed any restraining orders until the preliminary objections are heard, adjourning the matter to January 21.
The dispute stems from CBN’s December 2025 decision to revoke the licenses of Aso Savings, Union Homes, and two shareholders for undercapitalization, failure to meet minimum capital requirements, and other regulatory infractions. The CBN cited deteriorating financial conditions and non-compliance with the Banks and Other Financial Institutions Act (BOFIA) 2020 as reasons for its action. The plaintiffs maintain that proper due process was not followed and that NDIC moved too quickly with liquidation.
source: nairametrics