PenCom Suspends Seven Mortgage Banks Over Housing Loan Non-Compliance

By: Aremu Toyeebaht

The National Pension Commission (PenCom) has taken decisive action to safeguard pension contributors’ funds by suspending equity contribution applications submitted through seven Primary Mortgage Banks (PMBs) over alleged breaches of its housing loan guidelines.

In a circular dated August 11, 2025, signed by the Head of Benefits and Insurance Department, Obiora Ibeziako, and addressed to Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs), PenCom noted, “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 blacklisted institutions include 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.

According to PenCom’s spokesperson, Ibrahim Buwai, the suspension followed the failure of these mortgage banks to generate the housing loans for which pension funds had already been approved, raising concerns about compliance and accountability.

PenCom emphasized that the move was aimed at protecting the pension assets of contributors and ensuring that housing loan initiatives under the Contributory Pension Scheme (CPS) are managed transparently and effectively.