The Nigeria Deposit Insurance Corporation (NDIC) has begun the liquidation process for Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.
The two banks lost their operating licences following their revocation by the Central Bank of Nigeria (CBN) on Monday, December 15, 2025, due to several regulatory infractions and financial distress, including failure to meet minimum paid-up share capital requirements and insufficient assets to cover liabilities.
The NDIC, in a notice to depositors of the two banks made available to the media on Tuesday in Abuja, said the liquidation is in line with the provisions of Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020.
According to the notice, the verification and payment of insured deposits to depositors of the closed banks have begun, adding that depositors will be paid their insured deposits up to the maximum amount of N2,000,000 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.
It noted that depositors with balances exceeding N2,000,000 will be paid the initial insured amount, while their outstanding balances will be settled as liquidation dividends upon the realisation of assets and the 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,” NDIC said.
It said verification and processing of depositors’ claims may be carried out online or physically. “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),” the notice said.
It also advised creditors of the closed banks to submit their claims online or by visiting the nearest branch of the banks between Tuesday, December 16, 2025 and Thursday, December 30, 2025. It noted that in accordance with the provisions of the law, payment of liquidation dividends to creditors will commence after all depositors have been fully paid.
“After the full payment to all depositors, payment of deposit of staff of the defunct banks will be made from the proceeds of the sale of the banks’ assets, as liquidation dividends,” it noted, adding that shareholders shall subsequently be paid from further realisation of the banks’ assets and the recovery of outstanding debts, as liquidation dividends. It also advised debtors of the defunct banks to visit the Corporation’s Asset Management Department to ensure the settlement of their indebtedness in full.
