CBN Revokes Licenses of Aso Savings and Union Homes, NDIC Begins Liquidation

CBN Takes Decisive Action Against Mortgage Banks

The Central Bank of Nigeria (CBN) has revoked the operating licenses of two prominent mortgage institutions, Aso Savings and Loans Plc and Union Homes Savings and Loans Plc. The revocation, which took effect on December 15, 2025, was announced as part of the CBN's ongoing efforts to strengthen the mortgage sub-sector and ensure financial system stability in Nigeria.

Following this action, the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator for both banks and has commenced the process of verifying and paying insured deposits to customers, starting December 16, 2025.

Reasons for Revocation and Regulatory Breaches

The CBN cited several critical regulatory infractions and a deteriorating financial condition as the primary reasons for its decision. The revocation was carried out under the powers conferred by Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.

According to the apex bank, both institutions failed to meet key regulatory requirements, including:

• Inability to meet the minimum paid-up share capital for their license category.
• Insufficient assets to cover their liabilities.
• Being critically undercapitalized, with capital adequacy ratios below the prudential minimum prescribed by the CBN.
• Persistent non-compliance with regulatory directives despite repeated supervisory interventions.

In the case of Union Homes, it was also noted that the institution had been delisted by the Nigerian Exchange (NGX) in 2024 for failing to submit audited financial statements for over six years.

NDIC's Liquidation Process and Depositor Protection

The NDIC has assured depositors that their insured funds are safe and has outlined the process for claims. Depositors of the affected mortgage banks will be paid insured deposits of up to N2 million per depositor. Payments will be processed using Bank Verification Numbers (BVN) to identify alternate bank accounts, into which the insured sums will be automatically credited.

For depositors with balances exceeding N2 million, the initial insured portion will be paid immediately, while the remaining funds will be settled later as liquidation dividends. These dividends will be disbursed after the successful sale of the banks' assets and the recovery of outstanding loans. The NDIC has directed that verification and claims submission can be done either online or physically at designated branches of the closed banks between December 16 and December 30, 2025.

Implications for Creditors, Staff, and Debtors

Creditors of Aso Savings and Union Homes are advised to submit their claims, with payments to follow after all depositors have been fully settled, in line with statutory provisions. Staff of the defunct banks will receive payments from the proceeds of asset sales, but only after depositors have been fully compensated. Shareholders will be the last to be considered for payment, with any settlement dependent on further asset realization and debt recovery after all other obligations are met.

The NDIC has also urged debtors of both institutions to approach its Asset Management Department to regularize and repay their outstanding loan obligations, emphasizing that recoveries are crucial for expediting payments to depositors. The CBN reaffirmed its commitment to maintaining a stable and healthy financial system, stating that this action underscores its zero-tolerance approach to non-compliance within the financial sector.