NDIC Begins Payment For Depositors Of Aso Savings, Union Homes After CBN Revocation

The Nigeria Deposit Insurance Corporation (NDIC) has commenced the payment of insured deposits to customers of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, following the revocation of their licenses by the Central Bank of Nigeria (CBN) on December 15, 2025.

The NDIC, appointed as the official liquidator of the defunct banks, confirmed that depositors will receive insured amounts of up to ₦2m per account.

Deposits above this threshold will be paid later as liquidation dividends following the recovery of the banks’ assets and outstanding loans.

The NDIC urged depositors to submit claims between December 16 and December 30, 2025.

It added that verification requires proof of account ownership, valid identification (Driver’s License, Permanent Voter’s Card, or National Identity Card), and details of an alternate bank account linked to the depositor’s BVN.

The NDIC also urged depositors to activate transaction alerts on their alternate accounts to ensure timely notifications of payments.

Those without active alerts have been urged to check balances using their bank’s USSD codes or by visiting bank branches.

Creditors, bank staff, and shareholders will be paid in stages after depositors have been fully compensated, with liquidation proceeds from asset sales and debt recoveries forming the basis of these payments.

Debtors of the defunct banks are also required to settle outstanding loans with the NDIC’s Asset Management Department to facilitate the liquidation process.

The NDIC reassured the public of the safety of insured deposits in all licensed banks, encouraging Nigerians to continue their banking activities without fear.

The Central Bank of Nigeria had revoked the operational licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, citing persistent violations of banking regulations and failure to meet prudential requirements.

The apex bank said the action was taken as part of its ongoing efforts to reposition the mortgage sub-sector and enforce strict compliance with relevant laws and regulatory guidelines.

In a statement issued on Tuesday, the CBN said the revocation was carried out in exercise of its powers under 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.

The statement was signed by Mrs. Hakama Sidi Ali, Acting Director of the Corporate Communications Department of the CBN.

According to the regulator, the affected institutions breached several provisions of BOFIA 2020 and the Revised Mortgage Banking Guidelines, including failure to meet the minimum paid-up share capital requirement applicable to their licence categories.

The CBN also cited insufficient assets to meet liabilities, noting that both institutions were critically undercapitalised, with capital adequacy ratios falling below the prudential minimum prescribed by the regulator.

In addition, the apex bank said the mortgage banks failed to comply with several regulatory directives and obligations imposed on them, despite supervisory interventions.

“The affected institutions had violated various sections of BOFIA 2020 and the Revised Guidelines for Mortgage Banks in Nigeria,” the CBN said.

The regulator stressed that the decision aligns with its mandate to strengthen the financial system and safeguard stability, particularly within specialised banking segments such as mortgage finance.

“The CBN remains committed to its core mandate of ensuring financial system stability,” the statement added.

The revocation marks another regulatory intervention aimed at tightening oversight in the financial sector, as the apex bank continues to enforce capital adequacy, risk management, and governance standards across deposit-taking institutions.