The Pension Fund Operators Association of Nigeria (PenoP) says the policy by the National Pension Commission to use 25 per cent of Retirement Savings Account balance for mortgage will reduce the huge housing deficit in Nigeria.
Nigeria has an estimated 28 million housing deficit as of 2023, which shows that the country needs at least 28 million housing units to provide adequately for the population.
Expert say the country requires N21 trillion to provide housing units to fill the deficit. This entails that the real estate sector needs an investment of over N21 trillion to build sufficient housing entire population.
Consequently, the Chief Executive Officer Pension Fund Operators Association of Nigeria (PenOP), Oguche Agudah while speaking at the 2023 journalists workshop organised by the PenCom in Abuja noted that the mortgage financing policy by PenCom will go a long way in closing that deficit.
PenOp is the umbrella body of all the licensed Pension Fund Administrative firms in Nigeria.
Agudah while delivering a paper on Improving Accessibility and Service Delivery in RSA Mortgage Financing.” noted Nigerian housing deficit grew from 7 million in 1991 to 28 million in 2023 leading to overcrowded and obsolete housing infrastructure.
Represented by Akinbola Akintola
Research & Investment Lead at PenoP, he said “According to Association of Housing Corporations of Nigeria (AHCN), home ownership rate in Nigeria is 25%, one of the lowest in the world
“As such, the new mortgage policy of PenCom, RSA holders could acquire their own home with 25 percent of their pension savings, and will further ensure that people acquire properties even before retirement.
“So far 187 RSA holders have received N3.1 billion for mortgage since the policy stated last year and the figures are expected to to rise as the year progresses,” he explained
Speaking further Oguche added that “One of the the outstanding provisions of the Policy is that couples can apply, however they must individually be individually eligible,”
