By Peter.
The Central Bank of Nigeria (CBN) has revoked the operating licences of two mortgage institutions—Aso Savings and Loans Plc and Union Homes Savings and Loans Plc—due to ongoing regulatory breaches and failure to maintain required prudential standards.
In a statement released by Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, the CBN cited violations of the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Revised Guidelines for Mortgage Banks. Key issues included severe undercapitalization (with share capital falling below minimum thresholds), inability to cover liabilities with assets, and repeated non-compliance with regulatory directives.
The regulator described the action as essential for protecting depositors and bolstering stability in Nigeria’s financial system, reaffirming its commitment to enforcing strict compliance in the mortgage sub-sector.
Consequently, the Nigeria Deposit Insurance Corporation (NDIC) has taken over the liquidation of both institutions. Insured depositors will receive up to ₦2 million per account, in accordance with legal provisions.
Payments to eligible depositors have commenced, with claims processed via:
- Online verification through the NDIC claims portal
- In-person checks at the closed banks’ branches (available from December 16 to 30, 2025)
Depositors are required to submit proof of account ownership, valid ID, alternate bank account details (including BVN), and are encouraged to activate transaction alerts for payment notifications.
As mandated by law, depositor claims will be prioritized over those of other creditors, with any excess balances above the insured limit paid as liquidation dividends following asset recovery.
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