NDIC begins liquidation of ASO Financial savings, Union Houses after CBN revocation
The Nigeria Deposit Insurance coverage Company (NDIC) has commenced the liquidation of ASO Financial savings and Loans Plc and Union Houses Financial savings and Loans Plc following the revocation of their working licences by the Central {Bank} of Nigeria (CBN).
This units in movement the fee of insured deposits to hundreds of shoppers of the defunct mortgage banks.
NDIC public discover on Tuesday, December 16, disclosed that the CBN withdrew the banks’ licences on December 11, 2025, after which the NDIC was appointed liquidator in keeping with Part 12(2) of the Banks and Different {Financial} Establishments Act (BOFIA) 2020.
The transfer marks one other regulatory intervention geared toward safeguarding depositors and sustaining confidence in Nigeria’s {financial} system.
The NDIC confirmed that it has formally commenced liquidation proceedings beneath Sections 55(1) and (2) of the NDIC Act 2023. As a part of the method, verification and fee of insured deposits to clients of the 2 failed establishments have begun.
Underneath Nigeria’s deposit insurance coverage framework, every depositor is entitled to a most insured payout of N2 million. In accordance with the NDIC, funds will probably be made routinely utilizing depositors’ {Bank} Verification Numbers (BVN) to determine and credit score their different {bank} accounts.
“Depositors will probably be paid their insured deposits as much as the utmost quantity of N2,000,000 per depositor,” the Company stated, including that clients don’t have to open new accounts for the fee to be effected.
For patrons with balances exceeding the insured restrict, the NDIC defined that solely the preliminary N2 million can be paid instantly.
Excellent balances above this threshold will probably be settled later as liquidation dividends, topic to the restoration of loans and the sale of the banks’ belongings.
To speed up these funds, the Company stated it might begin the disposal of the banks’ belongings and intensify efforts to recuperate excellent money owed owed to the failed establishments.
In accordance with the general public discover, depositors can confirm and submit claims both on-line or bodily.
On-line submissions are to be made by the NDIC claims portal, whereas bodily verification will happen on the nearest branches of the closed banks between December 16 and December 30, 2025.
Clients choosing bodily verification are required to current proof of account possession, a legitimate technique of identification, and particulars of their different {bank account} alongside their BVN.
The NDIC additionally invited collectors of ASO Financial savings and Union Houses to submit their claims inside the identical verification window. Nonetheless, the Company confused that collectors would solely be paid in any case depositors have been absolutely settled.
Funds to workers and shareholders will come a lot later and can rely fully on proceeds realised from asset gross sales and debt recoveries, in keeping with statutory liquidation priorities.
Assurance to the banking public
Reassuring the broader public, the NDIC stated the liquidation doesn’t sign systemic weak spot within the banking sector.
“Banks whose licences haven’t been revoked stay protected and sound,” the Company stated, urging Nigerians to proceed their banking actions with out concern.
The NDIC added that its actions underscore its dedication to defending depositors’ funds and preserving confidence in Nigeria’s {financial} system.
The Nigerian Change (NGX) had lately lifted suspension on the buying and selling within the shares of Aso Financial savings & Loans after rectifying years of default in post-listing requirement, notably, the default in submitting {of financial} statements.
When buying and selling resumed within the inventory, the share value moved aggressively from about 50kobk per share to over N1.00 per share in lower than one week, rising as among the best performing stocks for 2 consecutive weeks.
Nonetheless, buying and selling within the inventory was suspended for the second time few weeks in the past to allow the mortgage finance establishment to conclude ongoing shares reconstruction. The train remains to be ongoing when the regulators hammer descended.
Like Aso Financial savings, Union Houses Financial savings and Loans with market capitalisation of N2.95 billion defaulted persistently on compliance with post-listing requirement prompting the NGX to delist the inventory after sequence of effort to get the agency comply with post-listing necessities.