The National Pension Commission (PenCom) has directed Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) to immediately halt acceptance and processing of equity contribution applications submitted by seven Primary Mortgage Banks (PMBs) due to non-compliance with housing loan guidelines.
In a circular dated August 11, 2025, signed by Obiora Ibeziako, Head of PenCom’s Benefits and Insurance Department, the commission 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.
The circular instructed PFAs and PFCs to cease processing applications from these banks with immediate effect.
Speaking with our correspondent, PenCom’s spokesman, Ibrahim Buwai, stated that the blacklisting resulted from the inability of the affected banks to generate the mortgages for which pension fund contributions had been approved.
“When you have policies like these, there are rules and guidelines.
The purpose of granting RSA holders access to their funds is to enable them to own houses through mortgages.
It was discovered that some of the primary mortgage institutions were not generating mortgages as required.
That constitutes non-compliance and is the reason for their blacklisting,” Buwai explained.
The Equity Contribution for Residential Mortgage scheme, launched in September 2022, allows RSA holders to access a portion of their retirement savings for payment towards securing a residential mortgage.
Pensioners and employees under the contributory pension scheme can use up to 25 per cent of their RSA balance for this purpose.
As of the first quarter of 2025, over 24,500 RSA holders had benefitted from the initiative, amounting to approximately N149.84 billion.
The commission’s move underscores its commitment to ensuring that pension funds are effectively utilized and that all participating mortgage institutions adhere strictly to operational guidelines.
The affected banks, Buwai noted, will remain suspended from participating in the scheme until they meet the stipulated regulatory requirements.
Housing finance experts welcomed PenCom’s intervention, describing it as a critical step towards enhancing transparency and accountability in the mortgage industry.
“RSA holders depend on these institutions to convert their pension funds into real assets.
Any failure to comply undermines confidence in the scheme and jeopardizes housing finance for thousands of Nigerians,” said Mrs. Grace Okafor, a Lagos-based mortgage consultant.
PenCom’s directive also aims to protect contributors’ funds from misuse and to reinforce regulatory oversight in the mortgage sector.
Observers argue that the blacklisting may prompt other mortgage banks to improve compliance to avoid penalties and maintain eligibility for equity contributions.
This development comes amid growing demand for affordable housing in Nigeria, where a significant portion of the population struggles with limited access to mortgage finance.
By tightening oversight and enforcing compliance, PenCom is not only safeguarding contributors’ funds but also fostering a more robust and reliable housing finance ecosystem.
Analysts predict that the blacklisting could catalyze further reforms in Nigeria’s mortgage sector, encouraging banks to innovate and offer more structured and transparent loan products.
It also serves as a warning to institutions that regulatory lapses may have serious operational and reputational consequences.
As the housing finance market continues to expand, PenCom’s enforcement actions highlight the importance of aligning pension fund utilization with national housing objectives.
With more Nigerians turning to mortgage solutions for homeownership, ensuring that financial intermediaries operate within the regulatory framework is essential for sustainable growth.