The National Pension Commission (PenCom) has barred seven Primary Mortgage Banks (PMBs) from processing equity contribution applications for residential mortgages, citing their failure to comply with regulatory guidelines.
In a circular dated August 11, 2025, and signed by the Head of Benefits and Insurance Department, Obiora Ibeziako, PenCom directed Pension Fund Administrators (PFAs), including Closed Pension Fund Administrators, and Pension Fund Custodians (PFCs) to immediately cease accepting applications routed through the affected institutions.
The blacklisted mortgage banks are Jigawa Savings & Loans Limited, FHA Mortgage Bank Limited, Delta Trust Mortgage Bank Limited, AG Mortgage Bank Limited, Infinity Trust Mortgage Bank Plc, First Trust Mortgage Bank Limited, and Mutual Alliance Mortgage Bank Limited.
“Following the cited letter, the commission instructs that Pension Fund Administrators, including Closed Pension Fund Administrators and Pension Fund Custodians, immediately stop accepting or processing equity contribution applications submitted by the following Primary Mortgage Banks… Please be guided,” the circular read in part.
PenCom’s spokesperson, Ibrahim Buwai, told The PUNCH that the sanction followed the inability of the affected banks to generate the mortgages for which Retirement Savings Account (RSA) holders had secured approval.
“When you have policies like these, there are rules and guidelines. The whole purpose of giving access to RSA holders is to enable them to own houses through mortgages,” he explained.
“So, it was discovered that some of the primary mortgage institutions were not generating mortgages. That means they were not complying with the regulations, and that is the reason for their blacklisting.”
The equity contribution initiative for residential mortgages was introduced by PenCom in September 2022, allowing RSA holders to withdraw up to 25 per cent of their account balances to meet the equity requirements for housing loans.
As of the end of the first quarter of 2025, about 24,582 RSA holders had benefitted from the scheme, accessing a total of ₦149.84 billion to facilitate home ownership.
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