The Nigeria Deposit Insurance Corporation has announced the commencement of payment of insured deposits to customers 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. Depositors of the affected mortgage banks will receive insured deposits of up to ₦2 million per depositor in line with the statutory deposit insurance framework.
The Central Bank of Nigeria revoked the licences as part of ongoing efforts to reposition the mortgage banking subsector and strengthen compliance with regulatory requirements. According to the apex bank, the decision was taken under the powers conferred by the Banks and Other Financial Institutions Act 2020 and the Revised Guidelines for Mortgage Banks in Nigeria. The CBN cited persistent regulatory breaches including failure to meet minimum paid up share capital requirements, insufficient assets to meet liabilities, critical undercapitalisation reflected in capital adequacy ratios below prudential thresholds, and repeated non compliance with regulatory directives.
Following the licence revocation, the NDIC formally commenced the liquidation process in accordance with the NDIC Act 2023. The Corporation has begun the verification and payment of insured deposits using depositors’ Bank Verification Numbers to identify alternate bank accounts into which insured sums will be automatically credited. Depositors with balances exceeding ₦2 million will receive the insured portion first, while the remaining balances will be paid as liquidation dividends subject to the realisation of the banks’ assets and recovery of outstanding debts.
Depositors have been advised to submit their claims through the NDIC online claims portal by completing the digital verification process. Those who prefer physical verification may visit the nearest branch of the closed banks between December 16 and December 30 2025, where NDIC officials will be available to assist. For verification and payment, depositors are required to present proof of account ownership, a valid means of identification, and details of an alternate bank account together with their Bank Verification Number.
Creditors of the closed institutions have also been advised to submit their claims within the verification period. Payment of liquidation dividends to creditors will commence only after all depositors have been fully settled in accordance with the law. The NDIC further stated that payments to staff of the defunct banks will be made from proceeds of asset sales after depositors have been fully paid, while shareholders will be settled subsequently from further asset realisation and recovery of outstanding obligations. Debtors of the closed banks have been advised to engage the NDIC Asset Management Department to regularise outstanding loan obligations.
This development reinforces the commitment of Nigeria’s financial regulators to depositor protection, market discipline, and the long term stability of the financial system.
