The National Pension Commission has suspended the acceptance and processing of equity contribution applications from seven Primary Mortgage Banks over alleged breaches of its housing loan guidelines.
In a circular dated August 11, 2025, and signed by Obiora Ibeziako, Head of the Benefits and Insurance Department, PenCom directed all Pension Fund Administrators, including Closed PFAs, as well as Pension Fund Custodians, to immediately stop handling applications linked to the affected lenders.
“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 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.
Although PenCom did not specify the reason for the suspension, the move is believed to be connected to the failure of the banks to provide mortgages for which pension-backed equity contributions had already been approved.
PenCom launched the equity contribution scheme for residential mortgages in September 2022, enabling Retirement Savings Account holders to apply up to 25% of their balances toward securing a home loan. The policy was introduced to expand access to homeownership for contributors under the Contributory Pension Scheme.
Despite the recent clampdown on some mortgage banks, Nigeria’s pension fund assets have maintained steady growth. By February 2025, total assets under management had risen to N23.26 trillion, up 1.77% from N22.86 trillion in January.
Growth has been driven by strategic asset allocation and a diversified investment mix.
Federal Government securities remain the largest asset class, accounting for N14.46 trillion, or 62.18% of total net asset value.
PenCom’s Director General, Omolola Oloworaran, noted that state-level remittances have improved, reflecting stronger participation in the CPS across subnational governments, though she admitted progress is still uneven.
“As of February 2025, total pension assets under management have surpassed N23 trillion, highlighting the increasing confidence in the Nigerian pension system,” Oloworaran said.
“But the journey is far from complete. Only 25 states and the FCT have enacted laws to implement the CPS, and just eight states have fully implemented the scheme.”
