Relief for Customers as NDIC Details N2m Payout After Aso Savings, Union Homes Collapse
by Pascal Oparada, https://www.facebook.com/legitngnews · Legit.ng News · Join- The Nigeria Deposit Insurance Corporation (NDIC) has unveiled a payout package for depositors of recently failed mortgage banks
- The Corporation announced this after the Central Bank of Nigeria (CBN) announced the licence revocation of the two banks
- The agency noted that depositors with verifiable proof are entitled to the threshold and a phased payment later
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Nigeria Deposit Insurance Corporation has assured customers of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc that their insured deposits are safe, following the revocation of the banks’ licences by the Central Bank of Nigeria.
In a statement released on Tuesday, December 16, 2025, the NDIC announced that depositors of the affected mortgage banks will be paid insured deposits of up to N2 million per depositor, in line with existing deposit insurance regulations.
The disclosure came shortly after the CBN formally withdrew the operating licences of the two institutions as part of broader reforms aimed at strengthening Nigeria’s mortgage banking subsector.
Why CBN revoked the banks’ licences
The CBN said the action was taken under powers granted by Section 12 of the Banks and Other Financial Institutions Act 2020, as well as Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.
According to the apex bank, Aso Savings and Union Homes failed to meet critical regulatory requirements.
These included inability to meet the minimum paid-up share capital for their licence category, weak asset positions that could not cover liabilities, and severe undercapitalisation with capital adequacy ratios below prudential limits.
The CBN also cited persistent non-compliance with regulatory directives despite repeated supervisory interventions.
How much will depositors receive?
The NDIC explained that, under Section 55(1) and (2) of the NDIC Act 2023, it has commenced the liquidation process for both banks and begun verification and payment of insured deposits.
Depositors will receive up to N2 million each, regardless of account type, with payments made directly into alternate bank accounts linked to their Bank Verification Number.
The BVN will be used as the primary identifier to ensure swift and accurate payments.
Customers with balances exceeding N2 million will receive the insured portion immediately, while the remaining funds will be paid later as liquidation dividends after asset sales and debt recovery.
What happens to balances above N2 million?
According to a Punch report, for depositors with amounts above the insured limit, the NDIC assured that efforts are underway to recover loans owed to the failed banks and dispose of their assets.
Proceeds from these processes will be used to pay outstanding balances in phases.
The Corporation noted that liquidation dividends will be paid as funds become available, ensuring transparency and fairness in the process.
Verification process for depositors and creditors
Affected customers have been advised to submit claims through the NDIC’s online claims portal by completing the digital verification form.
Those who prefer physical verification can visit the nearest branch of the closed banks between December 16 and December 30, 2025, where NDIC officials will be on the ground.
TheCable reported that required documents include proof of account ownership, a valid means of identification, BVN details, and information on an alternate bank account.
Creditors of the banks are also expected to submit claims within the same period.
Payments to creditors will begin only after all depositors have been fully settled, in line with the law.
Staff, shareholders, and debtors explained
The NDIC added that the staff of the defunct banks will be paid from asset sale proceeds after depositors have been fully compensated.
Shareholders will only be considered after all other obligations have been settled.
Debtors of Aso Savings and Union Homes have been urged to approach the NDIC’s Asset Management Department to regularise and repay outstanding loan obligations, as recoveries remain central to speeding up payments to depositors.
Key points
- Depositors will receive up to N2 million per person as insured deposits
- Payments will be made through BVN-linked alternate bank accounts
- Balances above N2 million will be paid later through liquidation proceeds
CBN revokes banking license of Heritage Bank
Legit.ng previously reported that CBN revoked the license of Heritage Bank Plc with immediate effect.
The move, announced in a statement on Monday, June 3, 2024, was part of the CBN's ongoing efforts to maintain a stable and healthy financial system as authorised under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
The statement signed by Hakama Sidi Ali, the Acting Director of Corporate Communications CBN, added that the revocation was executed after Heritage Bank breached Section 12 (1) of BOFIA 2020.
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Proofreading by Funmilayo Aremu, copy editor at Legit.ng.