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Mortgage equity contributions surge 279% to N39bn - PUNCH
Equity contributions for residential mortgages under the Contributory Pension Scheme surged 279 per cent year-on-year in Q1 2025, reaching N39.86bn and benefiting 8,408 Retirement Savings Account holders.
This was disclosed in the first quarter report of 2025 from the National Pension Commission.
In comparison, Q1 2024 recorded N10.52bn disbursed to 1,390 RSA holders. The upward trend was consistent throughout 2024, with N18bn released to 2,491 holders in Q2, followed by N32.62bn to 3,925 holders in Q3, and N30.24bn to 7,094 holders in Q4.
The Q1 2025 figure represents the highest recorded so far in the last few quarters, both in value and in the number of RSA holders accessing the mortgage equity contribution scheme.
On a month-on-month basis, this marks a 32 per cent increase in value and an 18 per cent rise in beneficiaries compared to Q4 2024.
Providing a breakdown, the report revealed that of the approved applications, 5,945, or 70.7 per cent, were from the public sector, reflecting strong uptake among government employees, while the private sector accounted for 2,463 approvals, or 29.3 per cent, indicating growing awareness and participation among private sector contributors.
The equity contribution for residential mortgages is available to active RSA holders who have contributed to the Contributory Pension Scheme for at least 60 months and are seeking to purchase their first home. It is part of an initiative aimed at leveraging pension savings to support homeownership, in line with Section 89(2) of the Pension Reform Act 2014 and related guidelines issued by the Commission.
Commenting on the surge, the Pension Fund Operators Association of Nigeria stated, “Looking back one year, the growth is even more striking. From N10.52bn in Q1 2024 to N39.86bn in Q1 2025, we’ve seen a 279 per cent jump in value, while the number of beneficiaries surged 505% from 1,390 to 8,408.
“What’s driving this surge? Greater awareness of the policy, improved access through pension fund administrators, and rising demand for affordable housing have all played a role. More Nigerians are realising that their pensions are not only a retirement safety net but also a powerful tool to unlock home ownership today.”
The association maintained that the CPS is creating real impact, giving people the means to secure homes, build stability, and strengthen financial inclusion across the country.
Meanwhile, PenCom recently blacklisted seven primary mortgage banks over alleged non-compliance with its housing loan guidelines.
In a circular dated August 11, 2025, signed by the Head of the Benefits and Insurance Department, Obiora Ibeziako, and addressed to PFAs and PFCs, PenCom directed operators to stop accepting or processing equity contribution applications submitted by the affected Primary Mortgage Banks.
It listed the affected institutions as 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.
