The National Pension Commission (PenCom) has directed the suspension of equity contribution applications from seven Primary Mortgage Banks, citing alleged non-compliance with its housing loan guidelines.
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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 stop processing applications from 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 circular stated.
While the regulator did not explicitly detail the reason for the suspension, it is believed to 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 scheme for residential mortgages in September 2022, allowing Retirement Savings Account (RSA) holders to apply up to 25% of their RSA balance toward securing a home loan. The initiative was aimed at improving access to homeownership for contributors under the Contributory Pension Scheme (CPS).
Despite the clampdown, Nigeria’s pension fund assets have continued to grow. As of February 2025, total assets under management reached N23.26 trillion, up 1.77% from N22.86 trillion in January. Strategic asset allocation and a diversified investment approach have been credited for the growth, with Federal Government of Nigeria (FGN) securities accounting for N14.46 trillion or 62.18% of total net asset value.
PenCom Director-General, Ms. Omolola Oloworaran, highlighted that state-level remittances have improved, reflecting growing commitment to the CPS, though progress remains 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.”
The Commission continues to advocate for broader adoption of the CPS to ensure long-term financial security for Nigerian workers.
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