The Central Bank of Nigeria (CBN) has officially revoked the operating licences of two major Primary Mortgage Banks (PMBs): Aso Savings and Loans Plc and Union Homes Savings and Loans Plc. This action was taken as part of the CBN’s efforts to reposition the mortgage sub-sector and enforce compliance with regulatory requirements.
Following the revocation, the Nigeria Deposit Insurance Corporation (NDIC) has immediately commenced the process of verification and payment of insured deposits to the affected customers.
The CBN cited multiple violations of the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Revised Guidelines for Mortgage Banks in Nigeria as the reasons for the decisive action.
Both institutions failed to meet the minimum paid-up share capital requirement for the category of mortgage bank licence granted to them by the CBN.
They were found to be critically undercapitalized, with their Capital Adequacy Ratio (CAR) falling below the prudential minimum ratio prescribed by the CBN.
Both banks had insufficient assets to meet their liabilities, and failed to comply with several directives and obligations imposed upon them by the CBN despite supervisory interventions.
The CBN, in a statement, reaffirmed its commitment to ensuring financial system stability and maintaining public confidence in the banking sector.
The Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the Liquidator of the two defunct banks and has commenced the payment process to protect depositors.
Depositors will be paid their insured deposits up to the maximum insured sum of ₦2,000,000 (Two Million Naira) per depositor.
The NDIC will use the depositors’ Bank Verification Number (BVN) to trace their alternate bank accounts, into which the insured amounts will be automatically credited.
Depositors whose funds exceed the insured limit must submit a claim. The NDIC has outlined the verification process, and encourages depositors to visit the NDIC claims portal on their website and complete the digital claims form.
Furthermore, depositors can also visit the nearest branch of the closed banks between Tuesday, December 16, 2025, and Thursday, December 30, 2025, where NDIC officials will be available.
The required documents for verification include, proof of account ownership, valid means of identification (Driver’s License, NIN, or Voter’s Card), and details of their alternate bank account and BVN.
Depositors with balances exceeding ₦2,000,000 will first receive the insured amount. The outstanding portion will be settled later as liquidation dividends, which will be paid out upon the realization and sale of the banks’ assets and the recovery of outstanding loans owed to the failed institutions.
The NDIC has also advised debtors of the defunct banks to contact the Corporation’s Asset Management Department to regularize and settle their outstanding loans.
