Liquidation Begins As Central Bank Revokes Aso Savings, Union Homes Licences

The Nigeria Deposit Insurance Corporation has commenced the liquidation of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, following the revocation of their operating licences by the Central Bank of Nigeria.

The action follows the CBN’s withdrawal of the licences of the two mortgage banks last week, on December 11, 2025, which required the NDIC to step in as liquidator in line with the provisions of the Banks and Other Financial Institutions Act 2020.

The licenses of the two banks were revoked for failing to meet the required capital base, among other critical factors, including insufficient assets to cover their liabilities. The CBN, in a statement, noted that the liquidation became necessary as the affected institutions violated various Sections of BOFIA 2020 and the Revised Guidelines for Mortgage Banks in Nigeria.”

According to the CBN, the violations included “failure to meet the minimum paid-up share capital requirement for the category of the bank licence granted to them by the CBN, having insufficient assets to meet their liabilities; being critically undercapitalised with a capital adequacy ratio below the prudential minimum ratio as prescribed by the CBN; and failure to comply with several directives and obligations imposed upon them by the CBN.”

Stating its commitment to its core mandate of ensuring financial system stability, the CBN said the revocation of the licenses was part of its efforts to re-position the mortgage sub-sector and promote a culture of compliance with relevant laws and regulations.

In a notice to depositors and the general public, the NDIC stated that it had begun verifying and processing insured deposits, marking the formal commencement of the liquidation process as provided under the NDIC Act 2023.

NDIC explained that depositors of the closed banks would be paid their insured deposits up to the maximum limit of N2 million per depositor. Payment will be made using depositors’ Bank Verification Numbers (BVN) as a unique identifier to trace their alternate bank accounts, into which the insured sums will be credited automatically.

For customers with balances above the insured limit, the Corporation said the initial N2 million would be paid immediately, while the remaining balances would be settled later as liquidation dividends. These payments, NDIC noted, would depend on the successful sale of the banks’ assets and the recovery of outstanding loans owed to the defunct institutions.

To fast- track the process, NDIC disclosed that it would commence the disposal of the banks’ assets alongside the recovery of debts, with the aim of expediting payment of uninsured deposits.

Depositors were given the option of submitting their claims either online or physically. For online verification, NDIC advised customers to visit its official claims portal, complete the digital claims form with the required information and submit same for processing.

NDIC noted that customers who prefer physical verification were asked 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 to attend to them.

According to the Corporation, depositors coming for physical verification are expected to present proof of account ownership, a valid means of identification such as a driver’s licence, permanent voter’s card or national identity card, as well as details of their alternate bank account and BVN.

NDIC also urged depositors to ensure that transaction alerts are activated on their alternate bank accounts to enable them receive notifications once payments are made. Customers without active alerts were advised to monitor their balances through USSD codes or by visiting their banks branches.

Beyond depositors, the Corporation said creditors of Aso Savings and Union Homes are also required to submit their claims within the same verification window, either online or at the nearest branch of the closed banks. It stressed that payment to creditors would only commence after all depositors have been fully settled, in line with extant laws.

On staff and shareholders, NDIC clarified that payments to employees of the defunct banks would be made after depositors have been fully paid, using proceeds from the sale of assets as liquidation dividends. Shareholders, the Corporation added, would only be paid after both depositors and creditors have been fully settled and further assets realised.

Meanwhile, NDIC called on debtors of the closed banks to approach its Asset Management Department to regularise and settle their outstanding loan obligations, noting that loan recoveries are critical to meeting liquidation payments.