The National Pension Commission (PenCom) has barred Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) from accepting or processing equity contributions submitted by seven mortgage banks over housing loan violations.
In a circular dated August 11, 2025, and signed by Obiora Ibeziako, Head of the Benefits and Insurance Department, PenCom directed all PFAs and PFCs to immediately halt the processing of such applications from the affected banks.
“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,” the circular stated.
The affected 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, and Mutual Alliance Mortgage Bank Limited.
Explaining the decision, PenCom’s spokesperson, Ibrahim Buwai, said the mortgage banks failed to generate the mortgages for which pension funds had been approved. The loans were intended to help approved applicants pay their equity contributions through mortgages. However, investigations revealed that some of the institutions did not deliver on this mandate, breaching regulatory requirements.
In September 2022, PenCom introduced a policy allowing Retirement Savings Account (RSA) holders to use up to 25 percent of their RSA balance as equity contribution for residential mortgages.
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