•NDIC takes over liquidation, begins verification of insured deposits

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 infractions and deepening financial distress.

The revocation, which took effect on December 15, 2025, was carried out 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 stated in a press release yesterday.

According to the apex bank, the affected institutions had failed to meet the minimum paid-up share capital requirements, had insufficient assets to cover their liabilities, and operated with capital adequacy ratios below prudential thresholds, consistently breaching regulatory directives.

“The CBN remains committed to its core mandate of ensuring financial system stability,” a statement, signed by the apex bank’s acting Director, Corporate Communications, Hakama Sidi Ali, said.

Following the licence revocation, the Nigeria Deposit Insurance Corporation (NDIC) was appointed liquidator of the defunct banks in line with the law.

The Corporation said it has commenced the liquidation process and begun verification and payment of insured deposits. Under the deposit insurance framework, depositors are entitled to receive up to N2 million per depositor, with payments made through BVN-linked alternate bank accounts.

Depositors with balances above the insured limit will receive the initial N2 million, while the remaining sums will be paid as liquidation dividends after the liquidation of the banks’ assets and recovery from outstanding loans.

The NDIC has directed depositors to submit claims either online or physically at designated branches of the closed banks, while creditors will be paid after all depositors have been fully settled, in accordance with statutory provisions.

The two mortgage banks have faced prolonged operational challenges, including depositor complaints, governance concerns and delisting from the Nigerian Exchange (NGX) over failure to submit audited financial statements for more than six years.

The CBN assured the public that the action was taken to strengthen the mortgage banking sub-sector and protect depositors, adding that the industry remains safe and sound.