The financial landscape in Nigeria’s mortgage subsector witnessed a major shake-up on Tuesday as the Nigeria Deposit Insurance Corporation (NDIC) officially moved in to liquidate two prominent institutions: Aso Savings and Loans Plc and Union Homes Savings and Loans Plc. This follows the decisive action taken by the Central Bank of Nigeria (CBN) to revoke the operational licenses of both mortgage banks over severe regulatory breaches and financial instability.
In a statement that sent ripples through the banking public, the NDIC announced that it has commenced the verification and payment of insured deposits. According to the Corporation, depositors of the defunct banks will be paid a maximum insured sum of N2,000,000 (Two Million Naira) per person. This payment process is designed to be seamless, with the NDIC leveraging the Bank Verification Number (BVN) system to automatically credit the alternate bank accounts of affected customers.
The path to this liquidation began on Tuesday when the CBN, through its Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, announced the immediate withdrawal of the licenses. The apex bank explained that the move was necessary to “reposition the mortgage subsector” and protect the wider financial system. The CBN cited a litany of failures by Aso Savings and Union Homes, including their inability to meet the minimum paid-up share capital requirement and a critical lack of assets to cover their mounting liabilities. The banks were also found to be “critically undercapitalised,” falling far below the prudential standards required by the Banks and Other Financial Institutions Act (BOFIA) 2020.
For depositors whose balances exceed the N2 million insured limit, the NDIC has offered a word of hope but also a call for patience. While the initial N2 million will be paid almost immediately, any amount above that threshold will be classified as “liquidation dividends.” These remaining sums will only be settled as the Corporation begins to sell off the banks’ physical assets—such as buildings and equipment—and recovers outstanding loans from the banks’ debtors.
The NDIC has provided two main routes for customers to claim their funds. For the tech-savvy, a digital claims verification form is available on the NDIC online portal. However, recognizing the diverse nature of bank customers, the Corporation has also set up physical verification centers. From Tuesday, December 16, to Thursday, December 30, 2025, NDIC officials will be stationed at the various branches of Aso Savings and Union Homes to assist depositors.
- Proof of account ownership (such as a passbook, chequebook, or statement of account).
- A valid means of identification (National ID, Driver’s Licence, or Permanent Voter’s Card).
- Details of an alternate bank account linked to their BVN.
The liquidation process follows a strict legal hierarchy. After depositors have been settled, the NDIC will attend to the claims of creditors. Only after all depositors and creditors have been fully paid will the staff and shareholders of the defunct banks receive any payments from whatever is left of the realized assets.
Industry analysts have noted that the fall of these two mortgage giants marks the end of a long struggle for survival. Both institutions had faced delisting from the Nigerian Exchange (NGX) in previous years due to their inability to provide audited financial statements. The NDIC’s quick intervention is seen as a move to prevent a “run on the bank” in other mortgage institutions and to reassure Nigerians that the safety net for their hard-earned savings remains functional.
As the December 30 deadline for physical verification approaches, the NDIC has urged all debtors of the closed banks to visit its Asset Management Department to settle their debts, warning that loan recoveries will be pursued aggressively to facilitate the payment of uninsured depositors.
