The Nigeria Deposit Insurance Corporation (NDIC) has announced the commencement of the liquidation process and payment of insured deposits to depositors at 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.
The CBN revoked the licences of the two mortgage banks for failing to meet minimum capital requirements, being critically undercapitalised, and failing to comply with several regulatory directives.
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In line with the provisions of Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020, the NDIC was appointed as liquidator to manage the closure and protect depositors.
Under the liquidation process, depositors will receive insured sums up to a maximum of N2 million per person.
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Payments will be credited automatically to depositors’ alternate bank accounts using their Bank Verification Numbers (BVN) as identifiers.
Depositors with balances above N2 million will receive the insured amount immediately, while the remaining sums will be settled as liquidation dividends as assets are realised and outstanding debts recovered.
Verification of claims can be carried out online via the NDIC claims portal or physically at the nearest branch of the closed banks between 16 and 30 December.
Depositors must present proof of account ownership, valid identification, and details of their alternate bank account and BVN.
The NDIC also advised depositors to activate transaction alerts for their alternate accounts to receive payment notifications. Where alerts are inactive, balances can be checked through USSD codes or bank branches.
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Creditors of the closed banks are similarly advised to submit claims online or physically within the same period. Payments to creditors will begin after all depositors have been fully compensated.
Following that, staff deposits and shareholders will receive payments from the proceeds of asset sales and debt recoveries, in accordance with liquidation procedures.
Debtors of the defunct banks are required to settle outstanding loans by visiting the NDIC’s Asset Management Department.
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