NDIC Begins ₦2m Depositor Payouts As CBN Shuts ASO, Union Homes Licences

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) on December 15, 2025.

In a notice to depositors and the general public dated December 16, 2025, the NDIC confirmed its appointment as liquidator in line with the provisions of Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 55 (1 & 2) of the NDIC Act 2023.

NDIC Commences Payment of Insured Deposits

The Corporation announced that the liquidation process has officially begun, with verification and payment of insured deposits already in progress. Depositors of the two defunct mortgage banks are entitled to receive up to ₦2 million each, being the maximum insured amount per depositor.

Payments, according to the NDIC, will be processed using depositors’ Bank Verification Numbers (BVN) to identify and credit their alternate bank accounts automatically, ensuring a seamless and cashless settlement process.

Depositors with balances above the insured threshold will receive the initial ₦2 million, while the remaining balances will be paid later as liquidation dividends, subject to the recovery of outstanding loans and the sale of the banks’ assets.

Asset Disposal, Loan Recovery Underway

To fast-track payments of uninsured deposits, the NDIC disclosed that it has commenced the realisation of the banks’ assets and intensified efforts to recover debts owed to the failed institutions.

Claims Submission: Online and Physical Options

Depositors are advised to submit their claims either online or physically.

For online verification, depositors are required to complete and submit the digital claims form on the NDIC portal.
Those opting for physical verification may visit the nearest branch of the closed banks between December 16 and December 30, 2025, where NDIC officials will be on hand.

Required documents include proof of account ownership, a valid means of identification, and details of an alternate bank account with BVN.

Transaction Alerts Advised

The NDIC urged depositors to activate transaction alerts on their alternate accounts to promptly receive payment notifications. Depositors may also confirm payments through their banks’ USSD platforms or branch visits.

Creditors, Staff and Shareholders

Creditors of ASO Savings and Loans Plc and Union Homes Savings and Loans Plc are required to submit claims within the same verification period. The NDIC noted that creditors will only be paid after all depositors have been fully settled, in accordance with the law.

Payments to staff of the defunct banks will be made from proceeds of asset sales after depositors’ claims have been settled, while shareholders will be paid last, subject to further asset realisation and debt recovery.

Debtors Warned to Settle Outstanding Loans

Debtors of the liquidated banks have been directed to liaise with the NDIC’s Asset Management Department to fully repay their outstanding obligations.

Public Assurance

The NDIC reassured the public of the safety of deposits in all licensed banks whose licences have not been revoked, stressing that the liquidation of the two mortgage banks does not pose a systemic risk to Nigeria’s banking sector.

The Corporation reaffirmed its commitment to protecting depositors and maintaining confidence in the financial system.

The NDIC has begun liquidation of ASO Savings and Loans Plc and Union Homes Savings and Loans Plc following CBN licence revocation, assuring depositors of up to ₦2 million insured payments and outlining claims procedures.