The Nigeria Deposit Insurance Corporation (NDIC) has announced that depositors of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc will receive insured payments of up to N2 million per depositor following the revocation of the banks’ licences by the Central Bank of Nigeria (CBN).
The NDIC disclosed this in a statement issued on Tuesday, shortly after the CBN withdrew the operating licences of the two primary mortgage banks as part of efforts to strengthen regulation and reposition the mortgage subsector.
The CBN, in a statement signed by its Acting Director of Corporate Communications, Hakama Sidi Ali, said the action was taken under the powers granted by Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.
According to the apex bank, Aso Savings and Loans Plc and Union Homes Savings and Loans Plc breached several regulatory requirements, including failure to meet the minimum paid-up share capital for their licence category, inadequate assets to cover liabilities, critical undercapitalisation with capital adequacy ratios below the prudential minimum, and non-compliance with multiple CBN directives.
Following the licence revocation, the NDIC said it has commenced liquidation proceedings for both institutions in line with Sections 55(1) and (2) of the NDIC Act 2023 and has begun the verification and payment of insured deposits.
The Corporation explained that depositors would be paid insured sums of up to N2 million per depositor. Payments will be made automatically into depositors’ alternate bank accounts using their Bank Verification Number (BVN) as a unique identifier.
Depositors with balances above N2 million will first receive the insured amount, while the remaining balances will be paid as liquidation dividends after the realisation of the banks’ assets and recovery of outstanding debts.
To facilitate the process, the NDIC said it will commence the sale of the banks’ assets and intensify loan recovery efforts to enable the settlement of uninsured deposits.
Affected customers were advised to submit their claims through the NDIC online claims portal by completing the digital verification form and providing the required information.
Those who prefer physical verification were directed to visit the nearest branch of the closed banks between Tuesday, December 16, 2025, and Thursday, December 30, 2025, where NDIC officials will be on ground.
For verification and payment, depositors are required to present proof of account ownership, a valid means of identification—such as a national identity card, permanent voter’s card or driver’s licence—along with details of an alternate bank account and their BVN.
Creditors of the defunct banks were also advised to submit their claims online or at the banks’ branches within the same period.
The NDIC noted that liquidation dividends to creditors would be paid only after all depositors have been fully settled, in line with statutory provisions.
The Corporation added that staff of the closed banks will be paid from the proceeds of asset sales after depositors have been fully compensated, while shareholders will be settled subsequently from further asset realisation and debt recovery.
Debtors of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc were urged to contact the NDIC’s Asset Management Department to regularise and settle their outstanding loan obligations.
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