NDIC begins liquidation of ASO Savings, Union Homes, moves to pay insured deposits

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), triggering the payment of insured deposits to thousands of affected customers.

In a public notice issued on Tuesday, December 16, the NDIC disclosed that the CBN withdrew the licences of the two mortgage banks on December 11, 2025. Subsequently, the NDIC was appointed liquidator in accordance with Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020.

The development represents another major regulatory intervention aimed at protecting depositors and reinforcing confidence in Nigeria’s financial system.

The NDIC confirmed that liquidation proceedings have formally commenced under Sections 55(1) and (2) of the NDIC Act 2023, with verification and payment of insured deposits to customers of the failed institutions already underway

Under Nigeria’s deposit insurance framework, each depositor is entitled to a maximum insured payout of N2 million. The Corporation explained that payments will be made automatically using depositors’ Bank Verification Numbers (BVN) to identify and credit their alternative bank accounts.

“Depositors will be paid their insured deposits up to the maximum amount of N2,000,000 per depositor,” the NDIC said, adding that customers are not required to open new bank accounts for the payment to be processed.

For depositors with balances exceeding the insured limit, the NDIC clarified that only the first N2 million will be paid immediately.

Any outstanding balances above this threshold will be settled later as liquidation dividends, subject to the successful recovery of outstanding loans and the sale of the banks’ assets.

To fast-track the settlement process, the Corporation said it would begin the disposal of the banks’ assets while intensifying efforts to recover debts owed to the failed mortgage institutions.

According to the notice, depositors can submit and verify their claims either online or physically. Online submissions are to be completed via the NDIC claims portal, while physical verification will take place at the nearest branches of the closed banks between December 16 and December 30, 2025.

Customers opting for physical verification are required to present proof of account ownership, a valid means of identification, their BVN, and details of an alternative bank account for payment.

The NDIC also invited creditors of ASO Savings and Union Homes to submit their claims within the same verification period. However, it stressed that creditors will only be paid after all depositors have been fully settled, in line with statutory liquidation priorities.

Payments to staff and shareholders, the Corporation noted, will come at a much later stage and will depend entirely on the proceeds realised from asset disposals and debt recoveries.

Reassuring the public, the NDIC emphasised that the liquidation of the two mortgage banks does not indicate systemic weakness in the banking sector. “Banks whose licences have not been revoked remain safe and sound,” the Corporation said, urging Nigerians to continue their banking activities without fear.

The NDIC added that the action underscores its commitment to depositor protection and the preservation of confidence in the Nigerian financial system.

Meanwhile, the Nigerian Exchange (NGX) had recently lifted the suspension on trading in the shares of ASO Savings and Loans Plc after the company addressed long-standing defaults in post-listing requirements, particularly the filing of financial statements.

Following the resumption of trading, the stock rallied sharply from about 50 kobo per share to over N1.00 within a week, emerging as one of the best-performing stocks for two consecutive weeks.