THE National Pension Commission (PenCom) has blacklisted seven Primary Mortgage Banks (PMBs) over alleged breaches of its residential mortgage guidelines, directing Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) to immediately halt all applications involving the affected institutions.
In a circular dated August 11, 2025, signed by the Head of Benefits and Insurance Department, Obiora Ibeziako, PenCom ordered PFAs and PFCs to discontinue processing equity contribution applications submitted by the listed PMBs.
Read also: Zamfara, Kano, Delta, Four Other States: INEC Raises Alarm Over Fake Governorship Candidates’ List
The sanctioned 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
Read also: Troops Repel Boko Haram Attack In Adamawa, Kill Six, Recover AK-47 Rifles, Machine Gun
Mutual Alliance Mortgage Bank Limited
The circular stated: “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.”
Why the Banks Were Blacklisted
Speaking to this newspaper, PenCom’s spokesman, Ibrahim Buwai, explained that the action followed the failure of the affected mortgage banks to generate actual housing loans despite receiving pension-backed approvals.
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 monies that get approved are meant to enable them to pay equity through mortgages. It was discovered that some of the primary mortgage institutions were not generating mortgages. That means they are not complying with the regulations. That is the reason for their blacklisting.”
The equity contribution for residential mortgages was introduced by PenCom in September 2022 to expand homeownership opportunities.
Under the policy, Retirement Savings Account (RSA) holders can apply to withdraw up to 25 per cent of their RSA balance as equity contribution for securing a residential mortgage.
Read also: Jigawa Allocates Over 15% of Annual Budget to Health Sector, Governor Namadi Says
Since inception, the initiative has recorded steady uptake. By the end of Q1 2025, about 24,582 RSA holders had benefited from the scheme, accessing a total of ₦149.84 billion.
PenCom, however, maintains that the move is necessary to safeguard pension funds, ensure accountability, and preserve confidence in the mortgage-backed housing scheme.
