In a decisive move to safeguard Nigeria's financial system, the Central Bank of Nigeria (CBN) has withdrawn the operating licences of two prominent primary mortgage banks. The affected institutions are Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.
Why the CBN Took Action
The apex bank announced the revocation, effective December 15, 2025, citing a series of grave failures by the two banks. According to a statement signed by the CBN's Acting Director of Corporate Communications, Mrs Hakama Sidi Ali, the decision was made under the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Revised Guidelines for Mortgage Banks.
The CBN listed multiple reasons for the drastic step. The banks failed to maintain the mandatory minimum paid-up share capital. Their assets were insufficient to cover liabilities, and their capital adequacy ratios fell dangerously below required prudential limits. Furthermore, they persistently violated regulatory directives, indicating deep-seated financial distress and poor governance.
NDIC Steps In as Liquidator
Following the licence revocation, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the official liquidator. The Corporation has immediately commenced the liquidation process.
A key part of this process is the verification and payment of insured deposits to customers. The NDIC framework guarantees depositors a payment of up to two million naira per individual. Payments will be made directly into customers' alternate bank accounts linked to their Bank Verification Number (BVN).
For depositors with balances exceeding the insured limit, they will first receive the maximum insured sum of N2 million. Any remaining funds will be paid later as liquidation dividends, after the NDIC recovers the banks' assets and collects outstanding loans.
How to File a Claim and What Comes Next
The NDIC has outlined the claims process for affected customers. Depositors can submit their claims either through an online portal or by visiting designated branches of the now-closed banks. The Corporation emphasised that all depositors will be settled before any payments are made to creditors, as stipulated by law.
The troubles for Aso Savings and Union Homes were not sudden. Both banks had a history of operational challenges, including numerous depositor complaints and governance issues. Their problems were severe enough to lead to their delisting from the Nigerian Exchange (NGX) in 2024 for failing to submit audited financial statements for over six years.
The CBN reassured the Nigerian public that this action was necessary to strengthen the mortgage banking sector and protect depositors' funds. It stressed that all other banks whose licences remain intact are safe and sound. With this revocation, Aso Savings and Union Homes are permanently barred from operating as licensed financial institutions in Nigeria.
