The National Pension Commission (PenCom) has suspended seven Primary Mortgage Banks from processing pension-backed equity contribution applications, citing alleged violations of its housing loan guidelines.
In a circular signed by head of benefits and insurance department, Obiora Ibeziako, PenCom directed all Pension Fund Administrators (PFAs), including Closed PFAs, and Pension Fund Custodians (PFCs), to “immediately stop accepting or processing equity contribution applications submitted by the following Primary Mortgage Banks.”
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 reasons for the suspension, industry sources said some banks failed to generate mortgages for which pension-backed contributions had been approved.
PenCom launched the equity contribution initiative in September 2022, allowing Retirement Savings Account holders to apply up to 25 per cent of their balance toward residential mortgages, to deepen homeownership access.
Despite the clampdown, Nigeria’s pension fund assets have continued to expand. As of February 2025, total assets under management hit N23.26 trillion, up 1.77 per cent from N22.86 trillion in January. Federal Government securities remain dominant, accounting for N14.46 trillion or 62.18 per cent of the total.
PenCom Director General, Omolola Oloworaran, said subnational governments were making stronger remittances into the Contributory Pension Scheme, but progress remained uneven. “Only 25 states and the FCT have enacted CPS laws, and just eight states have fully implemented the scheme,” she said.
She stressed that broader adoption of the CPS was critical to safeguarding workers’ deferred earnings and ensuring long-term retirement security.
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