The National Pension Commission (PenCom) has blacklisted seven Primary Mortgage Banks (PMBs) for allegedly violating its housing loan guidelines, ordering Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) to immediately halt processing applications linked to the affected institutions.
In a circular dated August 11, 2025, signed by the Head of Benefits and Insurance Department, Obiora Ibeziako, PenCom directed PFAs and PFCs, including Closed Pension Fund Administrators, to suspend all equity contribution applications submitted through the banks in question.
The affected mortgage institutions 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
Mutual Alliance Mortgage Bank Limited
According to the letter, the ban takes effect immediately, with PenCom warning PFAs and PFCs to strictly comply with the directive.
Why PenCom Blacklisted the Mortgage Banks
Speaking with The PUNCH, PenCom’s spokesperson, Ibrahim Buwai, explained that the blacklisting followed repeated breaches of the commission’s rules.
“Some of the primary mortgage institutions were not generating mortgages after RSA holders’ funds were approved. That is a clear violation of the guidelines,” Buwai stated.
He emphasized that the essence of the Residential Mortgage Scheme was to help RSA holders access home ownership through equity contributions. However, several blacklisted mortgage banks failed to provide mortgages after receiving approved equity contributions, undermining the policy’s intent.
Understanding the PenCom Mortgage Equity Contribution
Introduced in September 2022, PenCom’s residential mortgage equity scheme allows Retirement Savings Account (RSA) holders to withdraw up to 25% of their RSA balance to fund the equity contribution required for a mortgage.
The initiative was designed to bridge Nigeria’s housing deficit and enable pension contributors to acquire homes more easily.
Impact so far:
By the end of Q1 2025, a total of 24,582 RSA holders had accessed the scheme.
The cumulative value of approved withdrawals stood at ₦149.84 billion.
However, PenCom maintains that non-compliance by some mortgage banks poses risks to transparency and accountability, hence the decisive action.
Implications of the Blacklisting
RSA Holders Affected – Pension contributors linked to the blacklisted mortgage banks will have to switch to compliant institutions to access equity contributions.
Trust Issues in Housing Finance – The suspension may shake confidence in mortgage institutions, further exposing gaps in Nigeria’s housing finance system.
Regulatory Crackdown – The move signals PenCom’s intent to strictly enforce housing loan guidelines and sanction violators.
Future Monitoring – Other PMBs may face increased regulatory scrutiny to ensure compliance.
Expert Reactions
Financial analysts have applauded PenCom’s action, describing it as a bold step toward sanitizing Nigeria’s housing loan sector.
According to Lagos-based financial expert Ademola Ojo:
“This action will protect RSA holders from exploitation. If left unchecked, non-compliant mortgage banks could frustrate the government’s efforts to reduce the housing deficit.”
What RSA Holders Should Do
Confirm if their chosen mortgage bank is on PenCom’s blacklist.
Seek guidance from their PFA before applying for an equity contribution.
Consider switching to compliant mortgage banks to avoid delays or rejection.
PenCom’s decision to blacklist seven mortgage banks over housing loan breaches underscores its determination to enforce transparency, accountability, and compliance in Nigeria’s housing finance sector.
While the move may disrupt some RSA holders in the short term, it ultimately strengthens the credibility of the pension-backed mortgage scheme and protects contributors’ funds.
With over ₦149 billion already disbursed to thousands of RSA holders, the scheme remains one of Nigeria’s most significant policies to address the housing deficit—but only strict compliance by all players will sustain its long-term success.
