The Nigeria Deposit Insurance Corporation (NDIC) has initiated the liquidation process for Aso Savings and Loans Plc and Union Homes Savings and Loans Plc. This move follows the Central Bank of Nigeria’s (CBN) revocation of the operational licenses of the two primary mortgage banks due to violations of Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 7.3 of the revised BOFIA 2020 Act.

In line with Section 55, subsections 1 and 2 of the NDIC Act 2023, the corporation has commenced the verification and payment of insured deposits to depositors of the closed banks. Depositors will receive up to 2,000,000 per depositor, with payments made into alternate bank accounts using the Bank Verification Number (BVN) as a unique identifier. Those with balances exceeding 2,000,000 will receive the initial insured amount, while outstanding balances will be settled as liquidation dividends upon the realization of assets and recovery of debts.

The NDIC will sell the banks’ assets and recover outstanding loans to expedite payment of uninsured sums. Depositors can submit their claims online or physically at the nearest branch of the closed banks between December 16 and 30, 2025. Required documents for verification include proof of account ownership, a verifiable means of identification, and details of their alternate bank account and BVN.

Creditors are advised to submit their claims within the same timeframe, with payment of liquidation dividends to commence after all depositors have been fully paid. Staff of the defunct banks will receive payment from the proceeds of the sale of the banks’ assets, while shareholders will be paid from further realization of assets and recovery of outstanding debts.

Debtors of the defunct banks are required to settle their indebtedness in full by visiting the NDIC’s Asset Management Department. The NDIC assures depositors that it will ensure a smooth payment process, with transaction alerts activated for alternate bank accounts to receive notifications of payments. The liquidation process is expected to provide a measure of relief to depositors and creditors, while also promoting stability in the financial sector.