The National Pension Commission (PenCom) has barred seven Primary Mortgage Banks (PMBs) from processing pension-backed equity contributions for residential mortgages, citing their failure to comply with regulatory guidelines.
In a circular dated August 11, 2025, and signed by Obiora Ibeziako, Head of the Benefits and Insurance Department, PenCom directed Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) to immediately stop accepting or processing equity contribution applications submitted by the affected banks.
The blacklisted institutions include 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.
PenCom’s spokesperson, Ibrahim Buwai, told The PUNCH that the sanction followed the failure of the institutions to generate the mortgage loans for which pension-backed equity contributions had already been approved.
“When you have policies like these, you will have rules and guidelines. The purpose of granting access to RSA holders is to help them own homes through mortgages. It was discovered that some of these mortgage institutions were not generating the required loans, which means they were not complying with regulations. That is why they were blacklisted,” Buwai explained.
The equity contribution window, introduced by PenCom in September 2022, allows Retirement Savings Account (RSA) holders to apply up to 25 percent of their RSA balance towards the equity requirement for a residential mortgage.
As of the end of the first quarter of 2025, about 24,582 RSA holders had benefited from the scheme, accessing a total of N149.84 billion.
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