CBN shuts Aso Savings, Union Homes as NDIC begins paying customers

The Central Bank of Nigeria (CBN) has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, citing persistent regulatory breaches and weak financial positions at the two mortgage banks.

Following the action, the Nigeria Deposit Insurance Corporation (NDIC) has taken over both institutions and begun the process of verifying and paying insured deposits to customers, assuring depositors that their funds are protected under Nigeria’s deposit insurance framework.

In a statement Tuesday, the CBN said the licences were withdrawn in exercise of its powers under the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Revised Guidelines for Mortgage Banks in Nigeria, as part of efforts to reposition the mortgage sub-sector and enforce compliance with prudential rules.

The bank said both Aso Savings and Union Homes failed to meet the minimum paid-up share capital required for their licence categories, had insufficient assets to meet liabilities, and were critically under-capitalised, with capital adequacy ratios below regulatory thresholds.

The banks were also cited for failing to comply with several directives issued by the CBN over time.

Trading in the shares of Aso Savings and Loans Plc on the Nigerian Exchange (NGX) was suspended on November 19.

The move followed a recent share reconstruction exercise by Aso Savings, requiring the company’s registrars and the Central Securities and Clearing System Plc (CSCS) to reconcile their records. The suspension was intended to determine which shareholders were entitled to receive the reconstructed shares and to ensure accurate listing of the updated shareholding on the NGX.

Following the revocation, the NDIC was appointed liquidator for both banks, in line with BOFIA.

The corporation said liquidation proceedings have commenced and that the verification and payment of insured deposits to customers is already underway.

Under Nigeria’s deposit insurance scheme, depositors are entitled to a maximum payout of ₦2 million per depositor. The NDIC said depositors with balances within that limit will be paid in full, while those with higher balances will receive the insured amount first, with the remaining funds to be paid later as liquidation dividends after the banks’ assets are sold and outstanding loans recovered.

Payments will be made by tracing depositors’ Bank Verification Numbers (BVN) to their alternative bank accounts, into which the insured sums will be credited.

Depositors were advised to ensure transaction alerts are active on their accounts in order to receive notifications of payments.

What Depositors Should Do

To facilitate the process, the NDIC said depositors can submit claims either online through its claims portal or physically at branches of the closed banks, where NDIC officials will be available between December 16 and December 30, 2025.

Depositors will be required to provide proof of account ownership, valid identification and details of an alternative bank account.

The NDIC also said creditors of the failed banks should submit their claims within the same period, noting that payments to creditors will commence only after all depositors have been fully settled. Staff deposits and shareholders’ claims will be considered later, depending on the proceeds realized from the sale of the banks’ assets and recovery of debts.

Customers who owe the defunct banks were advised to continue repaying their loans, as the NDIC said it would pursue debt recovery to ensure timely settlement of depositors’ funds.