By Seun Ibiyemi and Denis Matthew
The Nigeria Deposit Insurance Corporation (NDIC) has commenced the liquidation of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc following the revocation of their operating license by the Central Bank of Nigeria (CBN).
The NDIC said the licences of the two mortgage banks were withdrawn by the CBN on December 15, 2025, after which the Corporation was appointed as liquidator in line with the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.
As part of the liquidation process, the NDIC has begun the verification and payment of insured deposits to customers of the defunct banks.
Depositors are entitled to receive up to ₦2 million each, with payments to be made automatically into their alternate bank accounts using their Bank Verification Number (BVN) as the primary identifier.
In a statement made available to Journalists, the Corporation explained that customers with balances exceeding ₦2 million would first receive the insured portion of their deposits, while the remaining balances would be settled later as liquidation dividends, subject to the recovery of outstanding loans and the sale of the banks’ assets.
Depositors were advised to submit their claims either online through the NDIC claims portal or physically at the nearest branches of the closed banks between December 16 and December 30, 2025.
The NDIC said its officials would be available at the branches to assist with verification and documentation.
Creditors of the defunct banks were also asked to submit their claims within the same period, noting that payments to creditors would only commence after all depositors have been fully settled, in accordance with the law.
The NDIC added that payments to staff and shareholders of the failed institutions would be made from proceeds realised from asset sales and debt recovery, after depositors and creditors have been paid.
Reassuring the public, the Corporation said the liquidation of Aso Savings and Union Homes does not affect other licensed banks, stressing that banks whose licences remain valid are safe. It urged depositors to continue their normal banking activities, reiterating its commitment to safeguarding depositors’ funds in the Nigerian banking system.