The Pension Fund Operators Association of Nigeria, (PENOP) has given an assurance that the 25% of Retirement Savings Account balance for Mortgage will help reduce housing deficit in the country.
PENOP Chief Executive Officer, Mr Oguche Agudah stated this at a workshop organised by National Pension Commission in Abuja
In a paper on “Improving Accessibility and Service Delivery in RSA Morgage Financing”, Mr Agudah pointed out that the country’s housing deficit grew from seven million in 1991 to 28 million in 2023, leading to overcrowded and obsolete housing infrastructure
Quoting Association of home ownership rate in Nigeria, PENOP CEO represented by Akinbola Akintola expressed regret that, ” home ownership rate in Nigeria is 25%, one of the lowest in the World”
Mr Agudah however expressed optimism that more engagement with government, banks and Developers would help in improving accessibility to the Mortgage
Speaking on the guidelines, the PENOP CEO, said while couples could apply, they have to be individually eligible.
According to him, “Anyone with a Retirement Savings Account(RSA) or Micro Pension Plan (MPP) provided they are in active employment or self employed ” and have at least three years to Retirement are eligible
He added that the maximum that could be used is 25% of total mandatory RSA balance at date of application.
