Aso Savings, Union Homes: NDIC begins payment to depositors

By Babajide Komolafe

The Central Bank of Nigeria, CBN, has revoked the operational licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, citing persistent violations of regulatory requirements and failure to comply with prudential standards guiding mortgage banks in Nigeria.

Meanwhile, theNigeria Deposit Insurance Corporation, NDIC, said it has commenced the liquidation process and payment of insured deposits to customers of the two defunct mortgage banks, following the revocation of their operating licences by the apex bank.

Announcing the closure of the two banks, Acting Director of the Corporate Communications Department, CBN, Mrs. Hakama Sidi Ali, in a statement said the action was part of its ongoing efforts to reposition the mortgage sub-sector and strengthen compliance with relevant laws and regulations.

The CBN stated: “As part of its efforts to re-position the mortgage sub-sector and promote a culture of compliance with relevant laws and regulations, the Central Bank of Nigeria, in exercise of the powers conferred on it under Section 12 of BOFIA 2020, and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria has revoked the licenses of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.”

According to the regulator, the decision followed findings that the two institutions breached several provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Revised Guidelines for Mortgage Banks in Nigeria.

The CBN explained that the affected institutions were found wanting in a number of critical areas. It said they recorded “failure to meet the minimum paid-up share capital requirement for the category of the bank licence granted to them by the CBN,” adding that they also had “insufficient assets to meet their liabilities.”

The apex bank further disclosed that both mortgage banks were “critically undercapitalised with a capital adequacy ratio below the prudential minimum ratio as prescribed by the CBN,” and also showed “failure to comply with several directives and obligations imposed upon them by the CBN.”

Reaffirming its resolve to sanitise the financial system, the CBN stressed that regulatory actions of this nature were necessary to safeguard depositors and ensure the overall stability of the financial system.

It stated unequivocally: “The CBN remains committed to its core mandate of ensuring financial system stability.”

The revocation is expected to further signal the regulator’s zero tolerance for non-compliance and its determination to strengthen confidence in Nigeria’s mortgage and financial services sub-sector.

NDIC begins payment to depositors

In a statement announcing the commencement of payment to insured depositors, the NDIC disclosed that it was appointed liquidator of the two mortgage banks after the CBN withdrew their licences on December 15, 2025, in line with the provisions of Section 12(2) of the Banks and Other Financial Institutions Act, BOFIA, 2020.

According to the Corporation, liquidation has commenced in line with Sections 55(1) and (2) of the NDIC Act, 2023, with verification and payment of insured deposits already underway.

The NDIC stated that depositors of the closed banks would be paid their insured deposits of up to a maximum of ₦2 million per depositor, using the Bank Verification Number, BVN, as a unique identifier to trace their alternate bank accounts, into which payments would be automatically credited.

It explained that depositors with balances exceeding ₦2 million would first receive the insured portion, while the outstanding balances would be settled as liquidation dividends after the realisation of the banks’ assets and recovery of debts owed to the institutions.

To facilitate the payment of uninsured deposits, the Corporation said it would commence the sale of the defunct banks’ assets and intensify the recovery of outstanding loans in order to fast-track the settlement of claims.

On claims submission, the NDIC advised depositors to verify and process their claims either online or physically. For online claims, depositors were urged to visit the NDIC claims portal and complete the digital claims verification form. Those opting for physical verification were directed to visit the nearest branches of the closed banks between Tuesday, December 16, 2025 and Thursday, December 30, 2025, where NDIC officials would be on ground to attend to them.

The Corporation added that for verification and payment, depositors are required to present proof of account ownership, a valid means of identification and details of their alternate bank accounts, including BVN.

The NDIC also advised depositors to activate transaction alerts on their alternate bank accounts to enable them receive notifications of payments, noting that account balances could also be checked through banks’ USSD codes or at bank branches.

Creditors of the closed banks were similarly advised to submit their claims within the same period, stressing that payment of liquidation dividends to creditors would commence only after all depositors had been fully paid, in line with the law.

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