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Tag: ASO Savings

  • Court summons CBN, NDIC over revocation of Aso Savings’, Union Homes’ licences

    Court summons CBN, NDIC over revocation of Aso Savings’, Union Homes’ licences

    A Federal High Court in Abuja has summoned the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) to show why they should not be restrained from taking further actions on the recent revocation of the licences of Aso Savings and Loans Plc as well as Union Homes Savings and Loans Plc.

    Justice Emeka Nwite issued the order in a ruling yesterday on an ex parte motion filed by both mortgage institutions. The motion was moved by their lawyer, Joseph Silas.

    The judge declined the applicants’ request and order restraining the respondents, but ordered that the CBN and the NDIC be put on notice.

    He said: “I have listened to the submission of the counsel for the plaintiffs/applicants and I have gone through the affidavit evidence, the exhibit, including the written address.

    “I am of the opinion, and I so hold, that the interest of justice will be met by putting the defendants on notice.

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    “I hereby ordered that the defendant be put on notice to come and show cause why the reliefs sought should not be granted.”

    Justice Nwite adjourned till January 5, next year, for the CBN and the NDIC to show cause.

    The plaintiffs – Aso Savings, Union Homes, Ridhwan Hamza and Ismaila Adamu – had, in the ex parte motion, sought two reliefs.

    • An order restraining the defendants/respondents from taking further steps on the purported revocation of the operational licence of the first and second plaintiffs (Aso Savings and Union Homes), pending the hearing and determination of the motion on notice.

    • An order barring the defendants/respondents from enforcing their unlawful decision in any way, form or manner, against the first and second plaintiffs/applicants, pending the hearing and determination of the motion on notice.

    Silas had, while moving the motion, stated that the CBN did not comply with the condition precedent to the invocation of its power to revoke the operating licence of both mortgage institutions.

    The lawyer averred that the NDIC, without allowing the two mortgage institutions to exhaust their rights of action, moved to curtail such rights by attempting to take them over.

    He added that if the CBN and the NDIC were not restrained, they would impose upon the plaintiffs/applicants their unlawful decisions in an irreversible way.

    In a supporting affidavit, Hamza, who is described as a shareholder in Aso Savings, admitted that the institutions had operational challenges, which the CBN was aware of.

    Hamza claimed that the CBN, without attempting to intervene on the failures of the plaintiffs, gave Aso Savings an ultimatum to meet its minimum capital requirement by ensuring that all share reconstruction activities were concluded in a manner that fully addressed the capital shortfall, not later than August 31, 2025.

    He said: “I know that notwithstanding the positive updates made to the first defendant/respondent (CBN) by the plaintiffs/applicants on December 16, 2025, in a press release, titled: ‘Revocation of the Operational Licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.

    “The first defendant/respondent, relying on Section 12 of BOFIA 2020 and Section 7.3 of its Revised Guidelines for Mortgage Banks, revoked the licenses of the plaintiffs/applicants.

    “I know that the first defendant/respondent grounded its decision on:

    • Failure to meet the minimum paid-up share capital requirement for the category of the bank licence granted to the plaintiffs/applicants

    • Having insufficient assets to meet its liabilities; being critically undercapitalised with a capital adequacy ratio below the prudential minimum ratio as prescribed by the 1st defendant/respondent; and

    • Failure to comply with several directives and obligations imposed upon the plaintiffs/applicants by the 1st defendant/respondent.

    Hamza also claimed that the CBN was aware of all the steps and the progress made by Aso Savings to raise its minimum capital requirement, with absolute success.

    The lawyer added that the CBN did not act in the public interest when it issued the press release revoking the operational licenses of the two financial institutions, without following the requirements of Section 34(4) of the Banks and Other Financial Institutions Act, 2020.

    He added that the action of the CBN was arbitrary, rash, unreasonable, and ran contrary to the public policy of developing the Nigerian economy, creating jobs, and encouraging investments.

    Hamza said the NDIC had sent out messages to Aso Savings’ customers “asking them to fill out an online claims form against the plaintiffs/applicants, even as the law allows the plaintiffs/applicants a window of 30 days to challenge the actions of the first defendant/respondent”.

    He added: “I know that the steps taken by the second defendant/respondent is aimed at extinguishing the right of the plaintiffs/applicants to challenge the actions of the 1st defendant/respondent by immediately commencing the liquidation process.

    “I know that the plaintiffs/applicants have constitutional rights to be heard fairly and to challenge the actions of the defendants/respondents.”

  • Aso Savings, Union Homes enter liquidation as NDIC moves to pay depositors

    Aso Savings, Union Homes enter liquidation as NDIC moves to pay depositors

    The Nigeria Deposit Insurance Corporation (NDIC) has commenced the liquidation of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc and the payment of insured deposits to their customers following the revocation of the banks’ licences by the Central Bank of Nigeria, it has emerged.

    The development was confirmed on Tuesday in a statement by the corporation’s Management, where it announced that it had begun the formal liquidation process and the verification and payment of depositors in line with its statutory mandate.

    The action followed the revocation of the licences of both institutions by the Central Bank of Nigeria on December 15, 2025, after which the NDIC was appointed as liquidator pursuant to Section 12 subsection 2 of the Banks and Other Financial Institutions Act 2020.

    The NDIC Management said it had activated all necessary procedures to protect depositors and ensure an orderly resolution of the failed institutions.

    “In line with Section 55, subsections 1 and 2 of the NDIC Act 2023, the Corporation has commenced the liquidation process for Aso Savings and Loans Plc and Union Homes Savings and Loans Plc,” it said.

    The corporation disclosed that verification and payment of insured deposits to customers of the closed banks had already begun.

    It stated that depositors would be paid up to the maximum insured amount of ₦2 million per depositor, using the Bank Verification Number (BVN) as a unique identifier to locate depositors’ alternate bank accounts into which payments would be credited automatically.

    The NDIC explained that depositors with balances above the insured limit would first receive the insured portion of their funds, while the remaining balances would be paid later as liquidation dividends.

    These subsequent payments, it said, would depend on the realisation of the banks’ assets and the recovery of outstanding debts.

    “Depositors with balances in excess of ₦2,000,000 will be paid the initial insured amount, while their outstanding balances will be settled as liquidation dividends upon the realisation of the assets and recovery of debts owed to the failed banks,” the Management noted.

    To facilitate the settlement of uninsured deposits, the corporation disclosed that it would immediately commence the sale of the banks’ assets and intensify efforts to recover outstanding loans.

    “To this end, the Corporation will commence the sale of the banks’ assets and continue recovery of outstanding loans to expedite payment of uninsured sums,” the statement added.

    The NDIC advised depositors to submit their claims either online or through physical verification.

    For online submission, depositors were directed to complete the digital claims form on the NDIC claims portal, while those opting for physical verification were asked to visit the nearest branch of the closed banks between Tuesday, December 16, 2025, and Thursday, December 30, 2025, where NDIC officials would be available to attend to them.

    For verification and payment, depositors are required to present proof of account ownership, a verifiable means of identification such as a driver’s licence, permanent voter’s card, or national identity card, as well as details of their alternate bank account and Bank Verification Number.

    The corporation also advised depositors to activate transaction alerts on their alternate accounts to receive payment notifications, noting that those without active alerts could confirm payments using their banks’ USSD codes or by visiting their bank branches.

    Creditors of the defunct banks were equally advised to submit their claims within the same verification window, either online or by visiting the nearest branch of the closed institutions.

    The NDIC stressed that in accordance with the law, liquidation dividends to creditors would only commence after all depositors had been fully paid.

    On the status of bank staff and shareholders, the corporation stated that payment of staff deposits would be made after depositors had been fully settled, using proceeds from the sale of the banks’ assets.

    Shareholders, it added, would only be paid after depositors and creditors had been fully settled, and subject to further realisation of assets and recovery of outstanding debts.

    The NDIC also issued a warning to debtors of the defunct banks, urging them to regularise their obligations.

    Debtors were advised to visit the corporation’s Asset Management Department to ensure full settlement of their outstanding loans.

    Reassuring the wider banking public, the NDIC said the action should not be interpreted as a sign of distress in the financial system.

    The corporation reaffirmed its commitment to the protection of depositors’ funds in all licensed banks and urged customers to continue their banking activities without fear, while stressing that banks whose licences have not been revoked remain safe and sound.

    For further enquiries, depositors and other stakeholders were advised to contact the Director of the Claims Resolution Department at the NDIC Lagos Office through the corporation’s official channels.

  • Shareholders okay ASO Savings’ N120b recapitalisation

    Shareholders okay ASO Savings’ N120b recapitalisation

    Shareholders of ASO Savings & Loans Plc have expressed support for the ongoing  recapitalisation of the bank.

    ASO Savings plans to raise N120 billion in new capital as part of efforts to strengthen and expand the operations of the bank.

    Shareholders, who spoke after the annual general meeting (AGM) of the bank, said the steady progress being made under the current board and management has reinforced confidence in the outlook of the bank.

    They noted that holding of the AGM, the first in more than 10 years, signalled the return of the bank to effective compliance and operational excellence.

    President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr Faruk Umar, who spoke on behalf of the shareholders, said the bank has made commendable progress under the current leadership.

    “We fully support the bank’s ongoing N120 billion recapitalisation programme and the strategic  plan for integration with Union Homes Savings & Loans Plc, which we believe will enhance capacity, unlock new value, and strengthen ASO’s role in Nigeria’s mortgage finance sector.

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    “We are encouraged by the management’s commitment to depositor protection, and strategic partnerships aimed at expanding access to affordable housing — particularly for civil servants, the diaspora, and the informal sector.

    “As shareholders, we are confident with the banks leadership and its growth strategy towards repositioning ASO Savings,” Umar said.

    Shareholders assured that they would continue to support the strategic initiatives by the board and management.

    Chairman, ASO Savings & Loans Plc, Alhaji Abdul Kofarsauri, assured shareholders that with its clear roadmap, regulatory alignment, and rising investor confidence, the bank ASO Savings is positioned for long-term institutional strength, innovation, and sustainable growth in Nigeria’s financial services sector.

    “Restoring shareholder value is a core objective. Once the recapitalization is completed and profitability is sustained, dividend payments will be reconsidered. The current focus remains on strengthening the balance sheet and ensuring long-term viability,” Kofarsauri said.

    Managing Director,  ASO Savings & Loans  Plc, Risikatu Ladi Ahmed said the bank has a clear path to recapitalisation and has been well-positioned for sustained growth.

    She said: “We’ve done the heavy lifting, and now we’re entering our growth phase—with the confidence of our regulators and the support of our investors”.

    She pointed at ASO’s renewed innovation-driven outlook, including digital mortgage solutions, rent-to-own schemes, and enhanced credit origination and recovery systems—all aimed at repositioning the bank as a national leader in housing finance.

    “In four years, we’ve stabilised the bank, restored profitability, and paved the way for recapitalisation. Our team is rebuilding ASO with integrity, discipline, and a clear sense of direction. The worst is behind us. We are not just running a bank—we’re rebuilding an institution Nigerians can trust again,” Ahmed said.

    Key extracts of the audited reports and accounts showed that ASO returned to profitability in 2021 and has maintained this trajectory over four consecutive years. In its 2024 audited accounts, the bank reported a rise in interest income to N1.3 billion, up from N1.1 billion in 2023, along with a profit after tax  of N82.8 million.