The Jigawa State Executive Council has approved the recapitalisation of the state-owned Savings and Loans Limited with a capital injection of N1 billion.
The move was announced by the Commissioner for Information, Youth, Sports and Culture, Sagir Musa, during a press briefing on the outcome of the first 2026 council meeting held in Dutse on Friday.
The Jigawa Savings and Loans Limited provides residential mortgage financing and other loan services, primarily to staff of the Jigawa State Government.
What the commissioner is saying
According to Musa, the recapitalisation is aimed at strengthening the financial position of the institution and ensuring compliance with the minimum capital requirement prescribed by the Central Bank of Nigeria (CBN) for Primary Mortgage Banks.
“The recapitalisation underscores the commitment of Gov. Umar Namadi-led administration towards ensuring the sustainability of the state-owned financial institutions,” Musa stated.
He added: “The move will safeguard depositors’ funds and enhance access to affordable mortgage and housing finances for the people of Jigawa.”
Compliance with CBN framework
The commissioner explained that the council’s approval aligns with the CBN’s regulatory framework, designed to maintain sustainable operations of mortgage institutions.
He noted that the recapitalisation would enhance Jigawa Savings & Loans’ capacity to contribute effectively to housing development in the state.
Musa reaffirmed the state government’s resolve to promote prudent financial management, institutional reform, and regulatory compliance across all state-owned enterprises.
He emphasized that the initiative reflects the administration’s broader agenda to ensure efficiency, transparency, and long-term viability of public institutions.
What you should know
In August, the National Pension Commission (PenCom) issued a directive halting the acceptance and processing of equity contribution applications submitted by Jigawa Savings & Loans and six other Primary Mortgage Banks, citing alleged non-compliance with its housing loan guidelines.
In a circular dated August 11, 2025, and 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.
While PenCom did not explicitly state the reason for the suspension, it may be linked to the failure of these banks to generate mortgages for which pension-backed equity contributions had been approved.
PenCom introduced the 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).
