The Nigeria Deposit Insurance Corporation (NDIC) says it has commenced the liquidation of ASO Savings and Loans Plc and Union Homes Savings and Loans Plc following the revocation of their operating licences by the Central Bank of Nigeria (CBN).
NDIC public notice on Tuesday, December 16, disclosed that the CBN withdrew the banks’ licences on December 11, 2025, after which the NDIC was appointed liquidator in line with Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020.
This sets in motion the payment of insured deposits to thousands of customers of the defunct mortgage banks.
The NDIC confirmed that it has formally commenced liquidation proceedings under Sections 55(1) and (2) of the NDIC Act 2023.
It stated that as part of the process, verification and payment of insured deposits to customers of the two failed institutions have begun.
Under Nigeria’s deposit insurance framework, each depositor is entitled to a maximum insured payout of N2 million.
According to the NDIC, payments will be made automatically using depositors’ Bank Verification Numbers (BVN) to identify and credit their alternative bank accounts.
“Depositors will be paid their insured deposits up to the maximum amount of N2,000,000 per depositor,” the Corporation said, adding that customers do not need to open new accounts for the payment to be effected.
The Corporation explained that for customers with balances exceeding the insured limit, only the initial N2 million would be paid immediately.
It added that outstanding balances above this threshold will be settled later as liquidation dividends, subject to the recovery of loans and the sale of the banks’ assets.
To accelerate these payments, the Corporation said it would commence the disposal of the banks’ assets and intensify efforts to recover outstanding debts owed to the failed institutions.
According to the public notice, depositors can verify and submit claims either online or physically.
Online submissions are to be made through the NDIC claims portal, while physical verification will take place at the nearest branches of the closed banks between December 16 and December 30, 2025.
The Corporation said customers opting for physical verification are required to present proof of account ownership, a valid means of identification, and details of their alternative bank account alongside their BVN.
The NDIC also invited creditors of ASO Savings and Union Homes to submit their claims within the same verification window. However, the Corporation stressed that creditors would only be paid after all depositors have been fully settled.
Payments to staff and shareholders will come much later and will depend entirely on proceeds realised from asset sales and debt recoveries, in line with statutory liquidation priorities.
Reassuring the wider public, the NDIC said the liquidation does not signal systemic weakness in the banking sector.
“Banks whose licences have not been revoked remain safe and sound,” the Corporation said, urging Nigerians to continue their banking activities without fear.
The NDIC added that its actions underscore its commitment to protecting depositors’ funds and preserving confidence in Nigeria’s financial system.
