CBN revokes licences of Aso Savings, Union Homes

NDIC begins payment to depositors

By Babajide Komolafe and Emma Ujah

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 meet prudential standards governing mortgage banks in Nigeria. The CBN’s decision was part of its ongoing efforts to strengthen the mortgage sub-sector and ensure greater compliance with financial regulations.

In a statement, the Acting Director of the Corporate Communications Department at CBN, Mrs. Hakama Sidi Ali, said the revocation of licences followed significant breaches of the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Revised Guidelines for Mortgage Banks in Nigeria. Both banks were found to be undercapitalised, with share capital below the minimum requirement for their licence categories, insufficient assets to meet liabilities, and failure to comply with several CBN directives.

The CBN emphasized that its actions were necessary to safeguard the financial system and protect depositors. “The CBN remains committed to its core mandate of ensuring financial system stability,” the statement read. This move signals the regulator’s zero-tolerance approach to non-compliance and its determination to rebuild confidence in Nigeria’s mortgage sector.

Following the licence revocation, the Nigeria Deposit Insurance Corporation (NDIC) has begun the liquidation process of both banks. The NDIC will pay insured depositors up to ¦ 2 million, per depositor, in line with the provisions of the Banks and Other Financial Institutions Act. Depositors with balances exceeding ¦ 2 million will receive the insured portion, while the remainder will be settled as liquidation dividends after the sale of assets and recovery of outstanding debts.

The NDIC stated that the payment of insured deposits has already begun, with depositors’ claims being processed through either online or in-person verification. For online claims, depositors are instructed to visit the NDIC claims portal, while those opting for physical verification can visit the closed banks’ branches from December 16 to 30, 2025.

To expedite the payment process, the NDIC has urged depositors to provide proof of account ownership, valid identification, and details of their alternate bank accounts, including Bank Verification Numbers (BVN). The corporation also advised depositors to enable transaction alerts to receive notifications of their payments.

The NDIC will prioritize the settlement of depositors’ claims before addressing creditors’ claims as required by law.

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