2 failed banks: NDIC begins insured payment to depositors, want banks’ debtors to pay

The Nigeria Deposit Insurance Corporation (NDIC) says it has commenced the process of liquidating Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, following the revocation of their operating licences by the Central Bank of Nigeria (CBN).

The Corporation in a notice to depositors and creditors of the banks in Abuja on Tuesday, said the verification and payment of insured deposits to depositors of the closed banks had begun.

NDIC said that depositors of the banks would be paid their insured deposits up to the maximum amount of two million naira per depositor.

The Corporation said it would use the Bank Verification Number (BVN) as a unique identifier to locate the alternate bank accounts of the depositors where the insured sums would be automatically credited.

The Corporation disclosed that depositors with balances in excess of two million naira would be paid the initial insured amount, while their outstanding balances be settled as liquidation dividends.

It added that the outstanding balances in excess of the two million naira would be paid upon the realisation of the assets and recovery of debts owed to the failed banks.

According to NDIC, the Corporation will commence the sale of the banks’ assets and continue recovery of outstanding loans in order to expedite payment of uninsured sums.

”Following the revocation of the licenc”es of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc by the CBN on December 15, 2025, the NDIC was appointed as the liquidator of the defunct banks in line with the provisions of Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020.

”Depositors are advised to submit their claims online by visiting the NDIC claims portal at https://ndic.gov.ng/claims-verification-forms/ completing the digital claims form with all required information.

”Depositors who prefer physical verification are advised to visit the nearest branch of the closed banks between Dec.16 and 30, where NDIC officials will be available to attend to them,” it said
NDIC advised depositors to present proof of account ownership, a verifiable means of identification and details of their alternate bank account and BVN during verification to facilitate payment of their insured sums.

The Corporation said the creditors of the closed banks were advised to submit their claims online or visit the nearest branch of the banks between Dec.16 and 30.

”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.

”Following the full payment to Depositors and Creditors, shareholders shall subsequently be paid from further realisation of the banks’ assets and the recovery of outstanding debts, as liquidation dividends.

”Debtors of the defunct banks are advised to visit the Corporation’s Asset Management Department to ensure the settlement of their indebtedness in full,” the Corporation said.

NDIC urged stakeholders to contact the Corporation through its electronic mail address. [email protected] for further information or clarification on claims verification.

Our correspondent reports that the CBN had revoked the licences of the banks on Monday.

The CBN’s Acting Director, Corporate Communications Department, Hakama Sidi-Ali said the action was part of the apex bank’s efforts to re-position the mortgage sub-sector and promote a culture of compliance with relevant laws and regulations.