The National Pension Commission (PenCom) has barred seven Primary Mortgage Banks (PMBs) from processing applications under the pension-backed equity contribution scheme for residential mortgages. The decision was taken due to non-compliance with housing loan guidelines, specifically failing to generate mortgages for approved funds.
Here’s everything you need to know:
1. The Affected Mortgage Banks
PenCom has instructed Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) to immediately stop accepting or processing equity contribution applications submitted through the following institutions:
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
Mutual Alliance Mortgage Bank Limited
2. Reason for Blacklisting
According to PenCom spokesman Ibrahim Buwai, the banks were failing to generate mortgages for which funds had already been approved. He explained:
“The whole purpose of giving access to RSA holders is to enable them to own houses through mortgages. It was discovered that some of the primary mortgage institutions were not generating mortgages. If that is the case, it means they are not complying with the regulations.”
3. About the Pension-Backed Equity Contribution Scheme
Introduced in September 2022, the scheme allows RSA holders to withdraw up to 25% of their balances for equity contributions toward home ownership.
As of Q1 2025, 24,582 RSA holders had accessed the scheme, with total disbursements of ₦149.84 billion.
4. Next Steps for Affected RSA Holders
Those who applied through the barred mortgage banks are advised to reapply through other eligible PMBs.
RSA holders who have already made upfront payments should contact the affected banks to determine the next line of action.
5. PenCom’s Enforcement
The commission’s directive emphasizes regulatory compliance and the protection of pension funds:
“Following the cited letter, the commission instructs that PFAs, 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.”
