The National Pension Commission (PenCom) has suspended the acceptance and processing of equity contribution applications submitted by seven Primary Mortgage Banks (PMBs), citing alleged non-compliance with its residential mortgage 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, as well as Pension Fund Custodians (PFCs), to immediately halt applications linked to the affected institutions.
“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 directive stated.
The suspended banks 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.
Although PenCom did not give explicit reasons for the suspension, industry observers suggest it may be linked to the failure of these banks to generate mortgages for which pension-backed equity contributions had already been approved.
The equity contribution scheme was introduced 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 boost access to homeownership for workers under the Contributory Pension Scheme (CPS).
Despite this regulatory clampdown, Nigeria’s pension industry continues to show resilience and growth. As of February 2025, pension fund assets under management stood at ₦23.26 trillion, up 1.77% from ₦22.86 trillion in January. According to PenCom, this growth reflects improved asset allocation strategies and a diversified investment approach.
Federal Government of Nigeria (FGN) securities remain the dominant asset class, accounting for ₦14.46 trillion or 62.18% of total net asset value.
PenCom’s Director General, Ms. Omolola Oloworaran, noted that remittances from state governments have improved, showing a stronger commitment to the CPS at subnational levels. However, she admitted that adoption remains uneven.
“As of February 2025, total pension assets under management have surpassed ₦23 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.”
The Commission reaffirmed its commitment to expanding the Contributory Pension Scheme nationwide while ensuring stricter compliance among financial institutions involved in housing finance.
