The Nigeria Deposit Insurance Corporation (NDIC) has announced the commencement of the liquidation process for Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.
This follows the revocation of the licenses of both institutions by the Central Bank of Nigeria (CBN) on December 15, 2025.
In line with Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020, the NDIC has been appointed as liquidator of the defunct banks.
According to the corporation, “the liquidation process follows Section 55, subsections 1 and 2 of the NDIC Act 2023. Verification and payment of insured deposits to depositors of the closed banks have begun.”
The NDIC stated: “Depositors will be paid their insured deposits up to the maximum amount of ₦2,000,000 (Two Million Naira) per depositor, using the Bank Verification Number (BVN) as a unique identifier to locate their alternate bank accounts, into which the insured sums will be automatically credited.
“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.
“To this end, the Corporation will commence the sale of the banks’ assets and continue recovery of outstanding loans in order to expedite payment of uninsured sums.”
The NDIC called on depositors to verify and process their claims, either online or physically.
For online submission, depositors are advised to visit the NDIC claims portal at https://ndic.gov.ng/claims-verification-forms/, complete the digital claims form with all required information, and click the “Submit” button.
For physical submission, depositors may visit the nearest branch of the closed banks between Tuesday, December 16, 2025, and Thursday, December 30, 2025, where NDIC officials will be available to assist.
The NDIC said; “For verification of deposits and subsequent payment of insured sums, depositors are required to present proof of account ownership; a verifiable means of identification (Driver’s License, Permanent Voter’s Card, or National Identity Card); and details of their alternate bank account and Bank Verification Number (BVN). In accordance with the provisions of the law, payment of liquidation dividends to creditors will commence after all depositors have been fully paid.”
On payments to bank staff and shareholders, the NDIC noted that staff deposits would be settled from the proceeds of asset sales as liquidation dividends, following full payment to all depositors. Shareholders will be paid subsequently from further realisation of assets and recovery of debts.
The NDIC also advised debtors of the defunct banks to visit its Asset Management Department to settle outstanding obligations, while assuring the public of its continued commitment to the safety of depositors’ funds in all licensed banks.
The corporation encouraged depositors to continue their banking activities without fear, affirming that banks whose licenses remain active are safe and sound.