PenCom blacklists Infinity Trust, AG, 5 other Mortgage banks, suspends RSA equity contributions
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The National Pension Commission (PenCom) has issued a directive halting the acceptance and processing of equity contribution applications submitted by seven Primary Mortgage Banks, citing alleged non-compliance with its housing loan 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, and Pension Fund Custodians (PFCs) to immediately cease 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.
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
- Mutual Alliance Mortgage Bank Limited
While PenCom did not explicitly state the reason for the suspension, it may 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 for residential mortgages 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 improve access to homeownership for contributors under the Contributory Pension Scheme (CPS).
What You Should Know
Despite the regulatory clampdown, Nigeria’s pension fund assets have continued to show strong growth. As of February 2025, total assets under management reached N23.26 trillion, a 1.77% increase from N22.86 trillion in January.
- The growth is attributed to strategic asset allocation and a diversified investment approach.
- Federal Government of Nigeria (FGN) securities remain the dominant investment class, accounting for N14.46 trillion or 62.18% of the total net asset value (NAV).
PenCom Director General, Ms. Omolola Oloworaran, noted that state-level remittances have improved, reflecting a growing commitment to the CPS among subnational governments. However, she acknowledged that 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 the broader adoption of the CPS to ensure long-term financial security for Nigerian workers.
