The Nigeria Deposit Insurance Corporation (NDIC) has officially commenced the winding down of two major financial institutions, Aso Savings and Loans Plc and Union Homes Savings and Loans Plc. This decisive action follows the revocation of the operating licences of both banks by the Central Bank of Nigeria (CBN).
CBN Revocation Triggers Liquidation Process
The Central Bank of Nigeria withdrew the licences of the two banks on Monday, December 15, 2025. This regulatory move was prompted by a series of serious infractions and deep financial troubles faced by the institutions. Key among the reasons cited were their failure to meet the minimum paid-up share capital requirements and having insufficient assets to cover their mounting liabilities.
In response, the NDIC activated its mandate as a deposit insurer. The corporation issued a formal notice to depositors on Tuesday, December 16, 2025, in Abuja, confirming the start of the liquidation process. This procedure is being carried out under the legal framework provided by Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020.
Payment Plan for Depositors and Creditors
The NDIC has immediately begun the verification and payment of insured deposits. According to the announcement, each depositor is guaranteed to receive their insured funds up to a maximum limit of N2,000,000 (Two Million Naira). The corporation will use the unique Bank Verification Number (BVN) to identify depositors and automatically transfer the insured sums into their alternate bank accounts.
For depositors with account balances exceeding the insured limit, the process is slightly different. They will first receive the initial insured amount of N2,000,000. Their remaining balances will be treated as liquidation dividends. These additional payments will be made later, from the proceeds realised through the sale of the failed banks' assets and the recovery of outstanding loans.
The NDIC has outlined the requirements for depositors to access their funds:
- Proof of account ownership.
- A verifiable means of identification (such as Driver’s License, Permanent Voter’s Card, or National Identity Card).
- Details of an alternate bank account and the linked BVN.
Verification and claims processing can be done either online or through physical visits.
Timeline for Creditors and Debtors
Creditors of the closed banks have also been given a window to submit their claims. They can do so online or by visiting the nearest branch of the affected banks between Tuesday, December 16, 2025, and Thursday, December 30, 2025. The law mandates that all depositors must be fully paid before any liquidation dividends are distributed to creditors.
The payment hierarchy is clearly defined. After all depositors are settled, the staff of the defunct banks will be paid from the asset sale proceeds. Shareholders will only receive payments afterwards, following further asset realisations and debt recoveries.
Furthermore, the NDIC has issued a stern advisory to all debtors of Aso Savings and Union Homes. They are required to visit the Corporation’s Asset Management Department to arrange for the full settlement of their outstanding debts. The NDIC emphasised that it will aggressively pursue the sale of the banks' assets and the recovery of loans to speed up payments to those with uninsured deposits.
