The circular, signed by the Head of Benefits and Insurance Department, Obiora Ibeziako, listed the affected mortgage banks 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.
A spokesperson for PenCom, Ibrahim Buwai, explained that the decision followed the inability of the affected banks to generate mortgages for which pension funds had been approved. According to him, the equity contribution scheme was designed to enable Retirement Savings Account (RSA) holders access part of their funds to own homes through mortgages.
“When you have policies like these, you will have rules and guidelines,” Buwai said in an interview. “The whole purpose of giving access to RSA holders is to enable them to own houses through mortgages. If some primary mortgage institutions are not generating the mortgages, it means they are not complying with the regulations. That is the reason for their blacklisting.”
The equity contribution window, introduced in September 2022, allows RSA holders to apply up to 25 per cent of their account balance toward the initial payment required to secure a residential mortgage. The initiative has been considered one of the commission’s landmark reforms to broaden pension utility beyond retirement.
So far, the scheme has gained traction. As of the end of the first quarter of 2025, 24,582 RSA holders had accessed a combined N149.84bn for mortgage equity contributions. Analysts note that the latest action against the seven PMBs underscores PenCom’s determination to enforce compliance and preserve the integrity of the programme, even as demand for affordable housing finance continues to grow.