BY NGOZI ONYEAKUSI

DG, PenCom

The National Pension Commission (PenCom) said it issued a directive halting the acceptance and processing of equity contribution applications submitted by seven Primary Mortgage Banks, due to alleged non-compliance with its housing loan guidelines.

PenCom, a circular dated August 11, 2025, signed by Obiora Ibeziako, Head of the Benefits and Insurance Department, PenCom instructed all Pension Fund Administrators (PFAs), including Closed PFAs, and Pension Fund Custodians (PFCs) to immediately cease processing applications from the affected institutions.

It 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. “Please be guided,” the letter read in part.

Reacting to the development, the spokesman for PenCom, Ibrahim Buwai, explained that the decision followed the failure of the affected mortgage banks to generate the loans for which pension funds had been approved.

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.

PenCom introduced equity contribution for residential mortgages in September 2022, allowing Retirement Savings Account (RSA) holders to apply up to 25% of their RSA balance toward securing a residential mortgage.

The initiative was designed to improve access to homeownership for contributors under the Contributory Pension Scheme (CPS).