The National Pension Commission (PenCom) has directed Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) to immediately suspend the acceptance and processing of equity contribution applications submitted by seven Primary Mortgage Banks.
This directive was contained in a circular dated August 11, 2025, and signed by Obiora Ibeziako, Head of the Benefits and Insurance Department at PenCom.
The circular cited alleged non-compliance with the commission’s housing loan guidelines as the reason for the decision.
According to the circular, the affected institutions 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 the commission did not provide specific details on the non-compliance, sources within the industry suggest that the suspension may be connected to the inability of the banks to generate mortgages for which pension-backed equity contributions had already been approved.
PenCom introduced the equity contribution for residential mortgages in September 2022.
The initiative allows Retirement Savings Account (RSA) holders to apply for up to 25 percent of their RSA balance to secure residential mortgages.
The objective is to improve access to homeownership among contributors under the Contributory Pension Scheme (CPS).
Despite the recent suspension, Nigeria’s pension fund assets have continued to record sustained growth.
As of February 2025, total assets under management stood at ₦23.26 trillion, reflecting a 1.77 percent increase from the ₦22.86 trillion recorded in January.
PenCom attributed the surge in pension assets to its strategic asset allocation framework and diversified investment approach.
Federal Government of Nigeria (FGN) securities remain the dominant investment class, accounting for ₦14.46 trillion, or 62.18 percent of the total net asset value.
Director General of PenCom, Ms. Omolola Oloworaran, also noted an improvement in pension remittances at the state level, describing it as a sign of growing confidence in the CPS across subnational governments. She, however, acknowledged that the pace 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.
She added that only 25 states and the Federal Capital Territory have enacted laws to implement the CPS, with just eight states fully implementing the scheme.
PenCom said it will continue to engage stakeholders and advocate for wider adoption of the CPS to secure long-term
