By Our Reporter
Following the revocation of the operational licenses of Aso Saving and loans Plc and Union Homes Savings and Loans Plc by the Central Bank of Nigeria, CBN, the Nigeria Deposit Insurance Corporation, NDIC, has begun the liquidation process of both banks, with a promise to pay each depositor up to N2 million.
The NDIC will pay depositors the agreed sum in line with the provisions of the Banks and Other Financial Institutions Act. According to BOFI, depositors with balances exceeding N2 million will receive the insured portion, while the remainder will be settled as liquidation dividends after the sale of assets and recovery of outstanding debts.
The Liquidators disclosed that depositors’ claims will be processed on line or through in-person verification, addig that depositors wishing to opt for online claims will be required to visit NDIC portal, while those for physical verification can visit the closed bank branches within the next two weeks, starting from December 16 to December 30, 2025.
NDIC therefore has advised all claimants to arm themselves with proof of account ownership, valid identification, and details of their alternate bank accounts, including Bank verification Number, BVN. The corporation also instructed depositors to enable transaction alerts to receive notification of their payments, stressing that the corporation will prioritize depositors claims over creditors’ claims as it is required by law.
Recall that the apex bank revoked the licenses of the two banks over breaches of the BOFI Act which included violations of regulatory requirements and failure to comply with prudential standards governing Mortgage institutions.
According to the Acting Director of the Corporate Communications Department at CBN, Mrs Hakama Sidi Ali, the revocation is part of CBN’s on-going effort to strengthen the mortgage sub sector and ensure greater compliance with financial regulations.
Both banks were found to be undercapitalised, with share capital below the minimum requirement for their licence categories, insufficient assets to meet liabilities, CBN noted.