The National Pension Commission (PenCom) has revealed that a total of 187 Retirement Savings Account (RSA) holders have accessed 25 percent of their contributions, amounting to N3.1 billion, for mortgage purposes by the end of July.
PenCom approved the utilization of 25 percent of RSA balances for mortgages in September of the previous year, allowing contributors to access their pension funds for housing needs.
At a capacity-building workshop in Abuja, themed “Transforming Service Delivery in the Pension Industry,” PenCom’s Director General, Mrs. Aisha Dahir-Umar, announced the rise of pension funds to N16.76 trillion, citing effective regulatory measures as a catalyst.
The proactive regulatory approach of PenCom has boosted transparency, accountability, and the overall protection of pension contributors’ interests. The pension assets increased by N1.77 trillion in the first half of 2023, while membership surged by over 146,920 contributors.
Additionally, PenCom plans to establish a pension academy to provide training to stakeholders and partners on sector activities and programs, enhancing capacity building efforts within the pension industry.
CEO of the Pension Fund Operators Association of Nigeria (PenOP), Oguche Aguda, emphasized the significant housing deficit in Nigeria, growing from 7 million in 1991 to 28 million in 2023. The new mortgage policy by PenCom is expected to play a pivotal role in reducing this gap in the housing sector.
Opinion The National Pension Commission’s decision to allow RSA holders to access a portion of their contributions for mortgage purposes is a commendable step towards addressing the country’s housing deficit. The establishment of a pension academy further underscores PenCom’s commitment to enhancing transparency and knowledge-sharing within the pension sector. The rise in pension assets and plans to establish a pension academy indicate the National Pension Commission’s dedication to improving the pension industry’s transparency and accessibility.