By Tony Obiechina, Abuja
The Pension Fund Operators Association of Nigeria (PenoP) has revealed that the housing deficit estimated at about 28 million will be reduced through mortgage financing.
According to PenoP the process will be implemented through the National Pension Commission policy by using 25 per cent of the Retirement Savings Account (RSA) balance for the mortgage.
PenOp is the umbrella body of all the licensed Pension Fund Administrative firms in Nigeria.
The Chief Executive Officer of PenOP), Oguche Agudah who stated this while speaking at the 2023 journalists workshop organized by the PenCom in Abuja noted that the mortgage financing policy by the Commission will go a long way in closing that deficit.
Agudah who was represented by Akinbola Akintola, Research & Investment Lead at PenoP said, “Nigerian 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), the homeownership rate in Nigeria is 25 per cent and one of the lowest in the world.
“As such, the new mortgage policy of PenCom, RSA holders could acquire their own home with 25 per cent 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 a mortgage since the policy stated last year and the figures are expected to rise as the year progresses,” he noted. READ ALSO:
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Speaking further Oguche pointed that “One of the outstanding provisions of the Policy is that couples can apply, however, they must individually be individually eligible,”
According to experts the country requires N21 trillion to provide housing units to fill the deficit. This means that the real estate sector needs an investment of over N21trillion to build sufficient housing entire population.
