The Pension Fund Operators Association of Nigeria (PenoP) is aligning with the policy by the National Pension Commission to use 25 percent of Retirement Savings Account balance for mortgage, saying it will reduce the huge housing deficit in Nigeria.
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 observed that the mortgage financing policy by PenCom will to a large extent bridge the shortfall.
Agudah while delivering a paper on Improving Accessibility and Service Delivery in RSA Mortgage Financing.” noted that 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 home ownership in nigeria ia one of the lowest globally, attributing this to the Association of Housing Corporations of Nigeria (AHCN), that put the rate at 25%.
“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.
PenOp is the umbrella body of all the licensed Pension Fund Administrative firms in Nigeria.
Nigeria has an estimated 28 million housing deficit as of 2023 and
expert say the country requires N21 trillion to provide housing units to fill the deficit.
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