The National Pension Commission (PenCom) has directed all Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) to immediately stop accepting or processing equity contribution applications from seven Primary Mortgage Banks (PMBs) due to their alleged failure to comply with the commission’s housing loan guidelines.
In a circular dated 11 August 2025, signed by Obiora Ibeziako, Head of Benefits and Insurance Department at PenCom, the commission instructed PFAs and PFCs to suspend dealings with 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.
The directive comes amid concerns that these mortgage institutions have not been generating the residential mortgage loans for which pension fund contributors had secured approval through the equity contribution scheme.
Speaking, PenCom spokesman Ibrahim Buwai explained that the commission’s housing loan policy was designed to enable Retirement Savings Account (RSA) holders to use a portion of their savings to pay the equity portion of residential mortgages, thereby facilitating home ownership.
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He stated, “When you have policies like these, you will have rules and guidelines. The whole purpose of giving access to RSA holders is to enable them to own houses through mortgages. The monies that get approved are meant to enable them to pay equity through mortgages. So, it was discovered that some of the primary mortgage institutions were not generating mortgages. That is just the long and short of it.”
According to Buwai, this failure to generate the approved mortgage loans amounts to a breach of the commission’s guidelines, warranting the suspension.
The equity contribution scheme was introduced by PenCom in September 2022 to empower Nigerians to leverage up to 25 per cent of their RSA balances to pay the equity portion required for residential mortgages. Since its inception, it has become a vital tool in the drive for home ownership among pension contributors.
As of the end of the first quarter of 2025, approximately 24,582 RSA holders have benefited from the scheme, drawing a total of N149.84 billion to finance their housing needs.
The suspension of these seven mortgage banks signals PenCom’s commitment to ensuring compliance and protecting the interests of pension contributors. The commission has urged mortgage banks and other stakeholders to adhere strictly to regulatory frameworks to maintain the integrity of the scheme.
