The National Pension Commission has directed Pension Fund Administrators and Pension Fund Custodians to immediately stop accepting or processing equity contribution applications submitted by seven Primary Mortgage Banks over alleged non-compliance with its housing loan guidelines.
In a circular dated August 11, 2025, signed by the Head of Benefits and Insurance Department, Obiora Ibeziako, and addressed to PFAs and PFCs, PenCom noted, “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.”
It listed the affected institutions as 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. “Please be guided,” the letter read in part.
Speaking with The PUNCH, the spokesman for PenCom, Ibrahim Buwai, explained that the decision followed the failure of the affected mortgage banks to generate the loans for which pension funds had been approved.
He said, “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 whole thing is meant for those who apply and get approved. 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. If that is the case, that means they are not complying with the regulations. That is the reason for their blacklisting.”
The Equity contribution for residential mortgage was introduced in September 2022 by PenCom.
This is the portion of funds that an RSA holder can apply from the RSA balance towards the payment required to secure a residential mortgage. RSA holders are permitted to utilise a maximum of 25 per cent of their RSA balance for this purpose
As of the end of the first quarter of 2025, about 24,582 RSA holders have benefited from the scheme to the tune of N149.84bn.
