The Nigeria Deposit Insurance Corporation (NDIC) has begun liquidating Aso Savings and Loans Plc and Union Homes Savings and Loans Plc after the Central Bank of Nigeria (CBN) revoked the operational licences of the two mortgage banks for breaching Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 7.3 of the revised BOFIA 2020 Act.
Pursuant to Sections 55(1) and 55(2) of the NDIC Act 2023, the NDIC is now verifying deposits and paying insured amounts to the banks’ depositors. Each depositor will receive up to ₦2,000,000, with payments made to an alternate bank account identified by the depositor’s Bank Verification Number (BVN). Depositors with balances above ₦2,000,000 will receive the insured portion immediately; the remaining balance will be paid later as liquidation dividends once the banks’ assets are realised and debts recovered.
The NDIC will sell the banks’ assets and recover outstanding loans to accelerate payment of uninsured sums. Depositors may file claims online or in person at the nearest branch of the closed banks between 16 December and 30 December 2025. Required documents include proof of account ownership, a valid form of identification, and details of the alternate bank account and BVN.
Creditors must also submit claims within the same period. Liquidation dividends to creditors will commence only after all depositors have been fully paid. Employees of the defunct banks will be compensated from the proceeds of asset sales, while shareholders will be paid from any further realisation of assets and debt recoveries. Debtors of the closed banks are required to settle their obligations in full by visiting the NDIC’s Asset Management Department.
The NDIC assures depositors that the payment process will be smooth, with transaction alerts activated for the alternate accounts to notify recipients of payments. The liquidation is expected to provide relief to depositors and creditors and to promote stability in the financial sector.
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