The Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) have filed preliminary objections before the Federal High Court in Abuja, contesting the court’s jurisdiction to hear a suit brought by Aso Savings & Loans Plc and Union Homes Savings & Loans Plc over the recent revocation of their operating licences.
The mortgage banks had jointly instituted the suit seeking to halt further regulatory actions following the CBN’s December 2025 directive revoking their licences and authorizing the NDIC to commence liquidation proceedings.
Banks Seek to Stop Liquidation Pending Appeal Window
The plaintiffs argued that although the CBN had revoked their licences, they still have a statutory 30-day window to challenge the apex bank’s decision, and therefore asked the court to restrain the NDIC from liquidating the institutions until the substantive suit is determined.
Their counsel, Joseph Silas, maintained that allowing liquidation to proceed would prejudice the plaintiffs in the event the revocation is eventually overturned. He asked the court to order both parties to maintain the status quo.
CBN, NDIC Insist Jurisdiction Must Be Decided First
CBN counsel Onyeka Ezeah and NDIC counsel Abubakar Shehu strongly opposed the application, arguing that issues of jurisdiction must be resolved before any interlocutory relief can be considered. Both agencies filed preliminary objections and counter-affidavits asserting that the NDIC’s actions were lawful and in line with its statutory mandate to protect depositors following licence revocation.
According to the NDIC, its intervention became necessary because depositors could no longer access their funds, stressing that deposit protection and claims processing fall within its legal responsibility once a licence is withdrawn.
Court Adjourns for Hearing of Preliminary Objections
Justice Emeka Nwite declined to grant immediate restraining orders and adjourned the matter to January 21, 2026 for hearing of the defendants’ preliminary objections. The judge noted that jurisdiction is a threshold issue that must be addressed first.
The suit, marked FHC/ABJ/CS/2776/2025, was jointly filed by Aso Savings, Union Homes and two shareholders, who argue that the CBN’s decision did not follow due process under the Banks and Other Financial Institutions Act (BOFIA) 2020. They also contend that the NDIC’s move to liquidate the institutions would permanently extinguish their right to challenge the regulatory actions.
The case continues to draw attention within Nigeria’s financial services sector amid ongoing regulatory reforms and heightened supervision of struggling non-bank institutions.
