In a significant move that underscores their commitment, both the National Pension Commission (PenCom) and Pension Fund Administrators (PFAs) have begun disbursing 25 percent of Retirement Savings Account (RSA) holders’ contributions for mortgage financing. This initiative has materialized as operators confirm the allocation of N3.1 billion to the accounts of numerous applicants, marking a considerable stride in easing the path to homeownership. As of the conclusion of July 2023, a total of 187 RSA holders have benefitted from this disbursement, setting a positive precedent for others to follow.
PenCom, the regulatory authority overseeing pensions, has granted approval for these funds, subsequently ensuring their seamless transfer to RSA applicants seeking mortgage funding. The CEO of the Pension Fund Operators Association of Nigeria (PenOP), Oguche Aguda, brought these noteworthy developments to light during the 2023 media conference held by PenCom in Lagos. As the representative body for licensed Pension Fund Administrators in Nigeria, PenOp plays a pivotal role in shaping the landscape of pension-related initiatives.
During his presentation on “Improving Accessibility and Service Delivery in RSA Mortgage Financing,” Aguda spotlighted the vital domain of mortgage financing. He delved into strategies aimed at enhancing accessibility and service delivery for eligible Retirement Savings Account holders. Aguda highlighted a pressing concern: Nigeria’s housing deficit, which has burgeoned from 7 million in 1991 to a staggering 28 million in 2023, resulting in overpopulated and outdated housing infrastructure.
Underpinning this innovative approach is PenCom’s novel mortgage policy, a beacon of hope for RSA holders. This policy empowers individuals to embark on the journey to homeownership with just 25 percent of their pension savings, ushering in a brighter future for aspiring homeowners across the nation.