The Nigeria Deposit Insurance Corporation (NDIC) has commenced verification and payment of insured deposits to customers of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc following the revocation of the operating licences of the two institutions by the Central Bank of Nigeria (CBN), marking the formal start of their liquidation process.
The action followed the decision of the CBN on December 15, 2025 to withdraw the licences of the affected mortgage banks, after which the NDIC was appointed as liquidator in line with Section 12(2) of the Banks and Other Financial Institutions Act 2020.
The Corporation disclosed this in a statement issued on Tuesday and titled “Notice to Depositors of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc (In-Liquidation)”, in which it outlined the steps being taken to protect depositors and other stakeholders.
According to the NDIC, the liquidation of the two banks has commenced in line with the provisions of Section 55, subsections 1 and 2 of the NDIC Act 2023, with immediate verification and payment of insured deposits to eligible customers. The Corporation explained that depositors would be paid up to the maximum insured sum of N2 million per depositor, with payments processed through the use of Bank Verification Numbers (BVN) as unique identifiers to trace depositors’ alternate bank accounts, into which the insured amounts would be automatically credited.
Read also: NDIC reassures depositors, warns against ponzi schemes at Kano International Trade Fair
It stated that depositors whose balances exceed the insured limit would first receive the initial insured amount, while the outstanding portion of their funds would be settled later as liquidation dividends, subject to the realisation of the banks’ assets and the recovery of debts owed to the failed institutions. To accelerate the settlement of uninsured balances, the NDIC said it would commence the sale of the banks’ assets and intensify efforts to recover outstanding loans.
On the verification process, the Corporation noted that depositors could submit their claims either online or physically. For online verification, depositors were advised to visit the NDIC claims portal, complete the digital claims form with the required information and submit it electronically. Those opting for physical verification were asked to visit the nearest branch of the closed banks between Tuesday, December 16, 2025 and Thursday, December 30, 2025, where NDIC officials would be on hand to attend to them.
The NDIC added that for verification of deposits and subsequent payment of insured sums, depositors would be required to present proof of account ownership, a valid means of identification such as a driver’s licence, permanent voter’s card or national identity card, as well as details of their alternate bank account and Bank Verification Number. Depositors were also advised to ensure that transaction alerts were activated on their alternate bank accounts to enable them receive notifications of payments, noting that those without alerts could still confirm credits through their banks’ USSD codes or by visiting bank branches.
Beyond depositors, the Corporation said creditors of the closed banks were also expected to submit their claims either online or by visiting the nearest branches of the affected banks within the same verification period. It explained that in line with existing laws, liquidation dividends would only be paid to creditors after all depositors had been fully settled.
The NDIC further disclosed that payments to staff of the defunct banks would be made only after depositors had been fully paid, with such payments coming from proceeds realised from the sale of the banks’ assets as liquidation dividends. It added that shareholders would be the last to be considered for payment, noting that any settlement due to them would be made from further realisation of assets and recovery of outstanding debts, after depositors and creditors had been fully paid.
The Corporation also reminded debtors of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc of their obligation to repay outstanding loans, advising them to visit the NDIC’s Asset Management Department to regularise and fully settle their indebtedness as part of the liquidation process.
