CBN Revokes Licences of Aso Savings, Union Homes, NDIC Begins Payouts to Depositors

The Central Bank of Nigeria (CBN) has revoked the operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, citing persistent regulatory breaches and failure to meet prudential standards for mortgage banks. The decision is part of the CBN’s ongoing efforts to strengthen the mortgage sector and ensure adherence to financial regulations.

According to Mrs. Hakama Sidi Ali, Acting Director of the CBN’s Corporate Communications Department, both banks were undercapitalised, with share capital below the required minimum, insufficient assets to cover liabilities, and repeated non-compliance with CBN directives. The regulator stressed that the move is necessary to safeguard the financial system and protect depositors, signaling a zero-tolerance approach to non-compliance and a commitment to rebuilding confidence in Nigeria’s mortgage industry.

Following the revocations, the Nigeria Deposit Insurance Corporation (NDIC) has initiated the liquidation process for both institutions. Insured depositors will receive up to ¦2 million each, while amounts above this limit will be settled through liquidation dividends after asset recovery. Payments have already begun, with claims being processed online through the NDIC portal or in person at the closed banks’ branches from December 16 to 30, 2025.

The NDIC has urged depositors to provide proof of account ownership, valid identification, and details of alternate bank accounts, including BVNs, and to enable transaction alerts for timely notifications. The corporation emphasized that depositors’ claims will be prioritized before the settlement of creditors’ claims in accordance with the law.