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.
