The Nigeria Deposit Insurance Corporation (NDIC) has assured depositors of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc that they will receive insured deposits of up to N2 million per depositor.
The assurance followed the revocation of the operating licences of the two mortgage banks by the Central Bank of Nigeria (CBN).
In a statement issued on Tuesday, the NDIC said it had commenced the liquidation process for the affected institutions in line with the provisions of the NDIC Act 2023.
Earlier, the CBN announced the withdrawal of the licences as part of efforts to reposition the mortgage banking subsector and strengthen regulatory compliance.
According to the apex bank, the action was taken under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.
The CBN cited several regulatory breaches by the banks, including failure to meet minimum paid-up share capital requirements, insufficient assets to cover liabilities, critical undercapitalisation, and non-compliance with regulatory directives.
Deposit Payment Process
The NDIC said depositors would be paid insured sums of up to N2 million, using their Bank Verification Number (BVN) to locate alternate bank accounts into which the funds would be credited.
Depositors with balances exceeding N2 million will receive the insured portion immediately, while the remaining balances will be paid later as liquidation dividends after asset sales and loan recoveries.
To facilitate this, the Corporation said it would begin the sale of the banks’ assets and intensify debt recovery efforts.
Claims and Verification
Depositors have been advised to submit claims through the NDIC online claims portal by completing a digital verification form.
Those who prefer physical verification can visit the nearest branches of the closed banks between December 16 and December 30, 2025, where NDIC officials will be available.
Required documents include proof of account ownership, a valid means of identification, BVN details, and information on an alternate bank account.
Creditors, Staff, and Shareholders
Creditors of the failed banks were also advised to submit claims within the verification period. Payment of liquidation dividends to creditors will begin after all depositors have been fully settled.
The NDIC added that staff of the defunct banks would be paid after depositors, while shareholders would receive payments only after further asset realisation and debt recovery.
Debtors of the closed banks were advised to contact the NDIC’s Asset Management Department to settle outstanding loan obligations.
