The National Pension Commission (PenCom) has blacklisted seven Primary Mortgage Banks (PMBs) for failing to comply with guidelines on the use of Retirement Savings Accounts (RSAs) as equity contributions for residential mortgages.
In a circular dated August 11, 2025, PenCom directed all Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) to stop accepting or processing applications from contributors seeking to use part of their RSA balances as equity contributions through the affected mortgage institutions.
The blacklisted mortgage banks
The institutions barred from the scheme 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.
Why they were blacklisted
According to PenCom, the action was taken after it was discovered that some of the mortgage banks had failed to generate residential mortgage loans for RSA holders who had already been approved to access funds for equity contributions.
“These mortgage banks were not complying with the guidelines of the scheme. Funds were approved for applicants to pay equity contributions, but instead of processing the mortgages, the institutions failed to deliver, thereby frustrating the intent of the policy,” PenCom explained.
The guidelines explained
The Guidelines on Accessing RSA Balances for Payment of Equity Contribution for Residential Mortgage, issued in September 2022, outline how contributors can use part of their retirement savings to achieve home ownership. Key provisions include:
- Eligibility:
- RSA holders must have contributed for at least five years (60 months).
- Contributors must not have previously accessed their RSA for a residential mortgage.
- Only contributors who do not already own a house are eligible.
- Withdrawable amount:
- Up to 25% of the RSA balance can be applied towards equity contribution.
- The balance must remain sufficient to provide retirement benefits upon exit from service.
- Mortgage institutions:
- Only mortgage banks approved by PenCom and licensed by the Central Bank of Nigeria (CBN) can participate.
- Such institutions must generate and process residential mortgages for contributors in line with set regulations.
- Scope:
- Funds can only be used for equity contributions to residential homes (not land purchases, renovations, or commercial properties).
- Process:
- Eligible RSA holders apply through their PFAs.
- PFAs liaise with approved mortgage banks to process equity contributions.
- Mortgage banks must confirm the mortgage arrangement before funds are disbursed.
Background
The scheme was introduced in 2022 to deepen homeownership opportunities for Nigerian workers by allowing them to access part of their retirement savings while still in active service. However, PenCom noted that the failure of some mortgage institutions to fulfill their obligations undermines the scheme’s effectiveness, hence the decision to blacklist them.
The Commission assured contributors that only compliant mortgage banks will continue to be part of the scheme, while monitoring mechanisms will be strengthened to ensure full compliance going forward.
