Retirement Plan To Reduce Nigeria’s Housing Deficit

The Pension Fund Operators Association of Nigeria (PenoP) says the policy by the National Pension Commission which allows owners of Retirement Savings Accounts to use 25 percent of their account balance for mortgage will reduce the huge housing deficit in Nigeria.

With an estimated housing deficit of 28 million as of 2023, Experts say the country requires about N21 trillion to build sufficient housing units to meet Nigeria’s needs.

Speaking at the 2023 journalists workshop organised by Nigeria’s Pension Commission in Abuja, the Chief Executive Officer, Pension Fund Operators Association of Nigeria (PenOP), Oguche Agudah
said that the mortgage financing policy by PenCom will go a long way in closing that deficit.

Agudah while delivering a paper on “Improving Accessibility and Service Delivery in RSA Mortgage Financing,” noted that Nigeria’s housing deficit grew from 7 million in 1991 to 28 million in 2023 leading to overcrowded and obsolete housing infrastructure.

“According to the Association of Housing Corporations of Nigeria (AHCN), home ownership rate in Nigeria is 25%, one of the lowest in the world.

“As such, with 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 started last year and the figures are expected to rise as the year progresses,” he explained.

“One of the the outstanding provisions of the Policy is that couples can apply, however they must individually be eligible,” Oguche added