National Pension Commission approves workers to use 25% of their retirement savings accounts for mortgage

The federal government should set up and start operations of the Nigeria Mortgage Guarantee Company, a credit enhancement firm, to enable residents to use their pension funds for home loans, The Punch newspaper reported.

The Mortgage Bankers Association of Nigeria believed the company platform would enable millions of working-class citizens to afford decent accommodation by bridging housing deficits.

Last week, the National Pension Commission approved workers to use 25% of their retirement savings accounts as a mortgage.

The mortgage guarantee company is being finalised by the Central Bank of Nigeria.

Despite numerous government policies targeted at increasing home ownership, 70% of the population in Nigeria cannot afford to buy a house, the Nigerian Tribune newspaper reported earlier.

Less than 100,000 mortgage loans represent a small percentage of the country’s population, the newspaper said.

(Editing by Seban Scaria