The Nigeria Deposit Insurance Corporation (NDIC) has officially started the process of refunding money to customers of two major mortgage banks, Aso Savings and Loans Plc and Union Homes Savings and Loans Plc. This action comes directly after the Central Bank of Nigeria (CBN) withdrew the operating licenses of these institutions on Monday, December 15, 2025.
How to Claim Your Money: Process and Deadline
Acting as the official liquidator for the closed banks, the NDIC has announced a clear window for depositors to submit their claims. The period for filing claims runs from Tuesday, December 16, 2025, to Tuesday, December 30, 2025. This gives affected customers a two-week period to gather their documents and apply for reimbursement.
To receive payment, depositors must provide specific documentation for verification. The required items include:
- Proof of account ownership with the defunct bank.
- A valid means of identification such as a Driver’s License, Permanent Voter’s Card, or National Identity Card.
- Details of an alternate bank account that is linked to the depositor’s Bank Verification Number (BVN).
The NDIC has emphasized that insured deposits are protected up to a maximum of ₦2 million per depositor per account. Any amount exceeding this insured limit will be handled later as liquidation dividends. These subsequent payments will depend on the recovery and sale of the failed banks' assets and the collection of outstanding loans.
CBN's Reasons for License Revocation
The decision to revoke the licenses was not taken lightly by the apex bank. In a statement signed by Mrs. Hakama Sidi Ali, the Acting Director of Corporate Communications, the CBN cited persistent breaches of banking laws and a failure to meet key prudential standards.
The regulator acted under the powers granted by Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria. The CBN stated that the institutions were guilty of several critical violations, including:
- Failure to meet the minimum paid-up share capital required for their license category.
- Insufficient assets to cover their liabilities, leaving them critically undercapitalized.
- Capital adequacy ratios that fell far below the minimum level set by the regulator.
- Non-compliance with multiple regulatory directives, despite repeated supervisory interventions.
The CBN described the move as part of its broader strategy to clean up and reposition Nigeria's mortgage sub-sector, ensuring strict adherence to all laws and guidelines.
Next Steps for Depositors and Other Stakeholders
For depositors expecting payments, the NDIC has offered crucial advice to ensure they are notified promptly. The corporation strongly recommends activating transaction alerts on the alternate bank accounts provided for the refund. For those without alerts, they should regularly check their account balances using their bank’s USSD code or by visiting a branch.
The payment hierarchy is clearly defined. Depositors will be fully compensated first. Only after this is completed will other claimants like creditors, bank staff, and shareholders receive payments. These subsequent payouts will be made in stages, funded entirely by the proceeds from asset sales and debt recoveries.
In a related development, the NDIC has called on all debtors of Aso Savings and Union Homes to promptly repay their outstanding loans to the corporation’s Asset Management Department. This step is vital to speeding up the overall liquidation process and freeing up more funds for distribution.
Finally, the NDIC has moved to reassure the general banking public. The corporation affirmed the safety of insured deposits in all licensed banks across Nigeria and encouraged citizens to continue their regular banking activities without fear or hesitation.
