The Nigeria Deposit Insurance Corporation (NDIC) has initiated the liquidation of Aso Savings and Loans and Union Homes Savings and Loans Plc by verifying their depositors pursuant to Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020.
The banks’ liquidation follows the Central Bank of Nigeria’s (CBN) revocation of their operating licenses due to serious and persistent violations of mortgage banking regulations.
The apex bank, in a statement released Tuesday by Acting Director of Corporate Communications Hakama Sidi Ali, announced that the action is part of its ongoing efforts to strengthen the mortgage sub-sector and ensure compliance with banking laws and supervisory standards.
The CBN revoked the licenses of the two mortgage banks after regulatory reviews revealed their consistent failure to meet prudential and operational benchmarks, violating the BOFIA 2020 and Revised Guidelines for Mortgage Banks in Nigeria.
Furthermore, the CBN revealed that Aso Savings and Union Homes were critically undercapitalised, with inadequate asset bases to cover liabilities and capital adequacy ratios below regulatory thresholds. These institutions also repeatedly failed to comply with CBN supervisory directives and obligations.
The regulator stated the revocation supports ongoing reforms to stabilise and increase transparency and confidence in Nigeria’s mortgage banking industry. It reiterated its commitment to decisive action against institutions violating regulatory standards, emphasising that adherence to capital and governance requirements is crucial for protecting the financial system.
NDIC-verified depositors will receive insured deposits up to ₦2,000,000, automatically credited to their alternate bank accounts identified by their BVN.
Depositors with balances above ₦2,000,000 will receive the initial insured amount, with the remaining balance paid as liquidation dividends after asset realisation and debt recovery.
To facilitate payment of the uninsured sum, the Corporation will sell the banks’ assets and expedite outstanding loan recovery.
NDIC offers online verification of depositor claims via https://ndic.gov.ng/claims-verification-forms/. Depositors preferring physical verification can visit the nearest branch of the closed banks between Tuesday, December 16, 2025, and Thursday, December 30, 2025, where NDIC officials will be available.
At verification centres, depositors must provide proof of account ownership, a valid photo ID (Driver’s License, Voter’s Card, or National Identity Card), alternate bank account details, and their Bank Verification Number (BVN).
Depositors should activate transaction alerts for their other bank accounts to receive payment notifications. If alerts are inactive, they can check balances using their bank’s USSD codes or by visiting a branch.
Bank creditors must submit claims online or at a branch between December 16 and 30, 2025. Payments will follow legal guidelines, with liquidation dividends paid to creditors after full depositor compensation.
Bank staff will be paid from the sale of bank assets as liquidation dividends after all depositors are fully compensated. In liquidation, bank shareholders are the last to receive dividends from asset realisation and debt recovery.
Comments are closed.