The Central Bank of Nigeria (CBN) has formally revoked the operational licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc, citing a “persistent” failure to adhere to regulatory standards and a critical breach of prudential requirements.
The move, announced by the apex bank’s Acting Director of Corporate Communications, Mrs Hakama Sidi Ali, underscores a rigorous “zero-tolerance” approach to non-compliance within the nation’s mortgage sub-sector.
According to the CBN, the decision follows exhaustive investigations that revealed significant violations of the Banks and Other Financial Institutions Act (BOFIA) 2020. Mrs Sidi Ali disclosed that both institutions were found to be severely undercapitalised, with share capital falling well below the mandatory minimums for their respective licence categories.
Furthermore, the banks were deemed to possess insufficient assets to cover their liabilities and had repeatedly failed to comply with several direct instructions issued by the regulator. The CBN maintained that this intervention was essential to “safeguard the financial system and protect depositors” as part of a broader effort to restore confidence in Nigerian mortgage banking.
In the wake of the revocation, the Nigeria Deposit Insurance Corporation (NDIC) has assumed control and commenced the liquidation process for both entities.
Under the provisions of the BOFIA, the NDIC will facilitate the payout of insured deposits. Key details of the recovery process include:
- Insured Limit: Depositors are entitled to an immediate payout of up to ₦2 million.
- Excess Balances: Funds exceeding the ₦2 million threshold will be treated as “liquidation dividends,” to be settled following the recovery of debts and the sale of the banks’ physical assets.
- Priority of Payment: The NDIC confirmed that the settlement of depositor claims will take legal precedence over the claims of creditors.
The NDIC has already initiated the verification exercise for affected customers. From 16 to 30 December 2025, depositors may attend physical branches of the shuttered banks for in-person verification or utilise the NDIC’s digital claims portal.
To ensure an expedited process, claimants are required to present proof of account ownership, a valid form of identification, and details of an alternative bank account linked to their Bank Verification Number (BVN). The corporation has also advised customers to enable transaction alerts to receive real-time notifications once their payments are processed.
This decisive action by the CBN signals an era of heightened scrutiny for financial institutions in the region, as the regulator seeks to prune the industry of unstable actors and ensure a more resilient financial landscape for the Nigerian public.
