NDIC begins liquidation of ASO Savings, Union Homes

Barbara Bako, Abuja.

The Nigeria Deposit Insurance Corporation (NDIC) 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).…

The licences of the two primary mqqortgage banks were withdrawn on December 15, 2025, and announced it December 16 after which the NDIC was appointed liquidator in line with the Banks and Other Financial Iaq1nstitutions Act (BOFIA) 2020.

In a notice to depositors and the general public, the Corporation said it has begun verification and payment of insured deposits to customers of the affected banks, in accordance with the NDIC Act 2023.

Under the arrangement, depositors are entitled to receive up to N2 million each as insured deposits.

The NDIC explained that payments will be made using depositors’ Bank Verification Numbers (BVN) to identify alternate bank accounts, into which the insured sums will be credited automatically.

Depositors with balances above N2 million will receive the maximum insured amount in the first instance, while the outstanding balances will be settled later as liquidation dividends, subject to the realisation of the banks’ assets and recovery of outstanding loans.

The Corporation said it has commenced the sale of assets and loan recovery to fast-track payment of uninsured funds.

Read also:CBN revokes ASO Savings, Union Homes licences in mortgage sector clean-up

The NDIC also advised depositors to submit their claims either online through its claims verification portal or physically at the nearest branches of the closed banks.

Physical verification will take place between December 16 and December 30, 2025, during which NDIC officials will attend to customers.

For verification, depositors are required to present proof of account ownership, a valid means of identification and details of an alternate bank account, including their BVN.

The Corporation further urged depositors to activate transaction alerts on their alternate bank accounts to enable them receive payment notifications, noting that balances can also be checked through bank branches or USSD channels.

Creditors of the defunct banks were also asked to submit their claims within the same verification period, either online or at bank branches.

The NDIC clarified that liquidation dividends to creditors would only commence after all depositors have been fully paid.

According to the notice, staff of the failed banks will be paid from proceeds of asset sales after depositors’ claims have been settled, while shareholders will be considered subsequently from further asset realisation and debt recovery.

The NDIC also called on debtors of the affected banks to settle all outstanding obligations by visiting the Corporation’s Asset Management Department.

The Corporation assured stakeholders of its commitment to ensuring an orderly liquidation process and timely settlement of legitimate claims.