PenCom Blacklists Seven Mortgage Banks, Suspends RSA-Backed Equity Contributions
The National Pension Commission (PenCom) has suspended the processing of equity contribution applications from seven Primary Mortgage Banks over alleged non-compliance with its housing loan guidelines. The directive, issued in a circular dated August 11, 2025, was signed by Obiora Ibeziako, Head of the Benefits and Insurance Department, and ordered all Pension Fund Administrators (PFAs), Closed PFAs, and Pension Fund Custodians (PFCs) to stop handling applications linked to the affected institutions.
The mortgage banks affected by the suspension 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. While PenCom did not provide detailed reasons for the blacklist, industry analysts suggest it may be tied to the banks’ inability to generate approved mortgages under the pension-backed equity contribution scheme.
PenCom introduced the equity contribution policy in September 2022, allowing Retirement Savings Account (RSA) holders to use up to 25% of their RSA balance to secure residential mortgages. The initiative was intended to boost access to affordable housing for contributors under the Contributory Pension Scheme (CPS). The latest clampdown, however, raises questions about compliance and the effectiveness of mortgage institutions in supporting the scheme.
Despite regulatory restrictions, Nigeria’s pension fund assets have continued to grow. As of February 2025, total assets under management stood at N23.26 trillion, reflecting a 1.77% increase from N22.86 trillion in January. Federal Government of Nigeria (FGN) securities dominate the portfolio, accounting for N14.46 trillion, or 62.18% of the total net asset value (NAV). Experts attribute the growth to strategic asset allocation and a diversified investment approach.
PenCom’s Director General, Ms. Omolola Oloworaran, noted that state-level remittances into the CPS have improved, though progress remains uneven nationwide. “Only 25 states and the FCT have enacted laws on the CPS, and just eight states have fully implemented the scheme,” she said. The Commission continues to push for broader adoption of the contributory pension system to strengthen financial security and expand access to housing finance in Nigeria.
Source: Naira metrics