The Central Bank of Nigeria (CBN) has taken decisive regulatory action, withdrawing the operating licences of two prominent mortgage banks. This move has triggered a structured liquidation process aimed at protecting customers' funds.
Licence Revocation and Liquidation Process Commences
The CBN officially revoked the licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc on Tuesday, December 16, 2025. This decision, announced via a statement on the apex bank's website, marks a significant step in its oversight of the financial sector. Following the revocation, the Nigeria Deposit Insurance Corporation (NDIC) was immediately appointed as the official liquidator for both institutions.
This appointment is in strict accordance with the Banks and Other Financial Institutions Act (BOFIA) 2020. The NDIC has since issued a formal notice to depositors, confirming that the liquidation process is now active under the provisions of the NDIC Act 2023.
How Depositors Can Claim Insured Funds
The NDIC has swung into action to ensure eligible depositors recover their insured savings. The corporation has stated that insured deposits of up to N2 million per depositor will be paid promptly. To streamline the payout, the NDIC will utilize Bank Verification Numbers (BVN) to identify account holders and trace their alternate bank accounts for direct crediting.
For depositors with balances exceeding the N2 million insurance limit, they will first receive the insured amount. Any additional funds will be paid later as liquidation dividends, dependent on the recovery of the banks' assets and outstanding loans.
The NDIC has established a two-pronged verification system for claimants:
- Online Verification: Depositors can visit the NDIC claims portal, complete a digital form, and submit required documents electronically.
- Physical Verification: Individuals can visit the nearest branches of the closed banks between December 16 and December 30, 2025, to meet with NDIC officials in person.
For successful claims, depositors must provide proof of account ownership, a valid ID (National ID, Voter's Card, or Driver's Licence), their BVN, and details of an alternate bank account.
Order of Settlement and Warnings to Debtors
The NDIC has outlined a clear hierarchy for settling all outstanding obligations from the liquidation. Depositors are the first and foremost priority. Only after all depositors have been fully settled will the corporation address claims from creditors.
Subsequent payments will then be made to staff of the defunct banks, using proceeds from asset sales. Shareholders will be considered last, after all other obligations to depositors, creditors, and staff have been met.
In a related development, the NDIC issued a stern warning to loan defaulters of the two banks. Debtors have been advised to promptly repay their outstanding loans by visiting the NDIC's Asset Management Department. Loan recoveries are a critical component of the liquidation process and will influence the size of eventual liquidation dividends for uninsured depositors and creditors.
This series of actions by the CBN and NDIC is designed to safeguard depositors' interests, ensure an orderly wind-down of the affected institutions, and maintain overall confidence in the stability of Nigeria's financial system.
