The number of Retirement Savings Account holders tapping into their pensions for home acquisition soared by 86.5% in the fourth quarter of 2024, highlighting the deepening economic strain on Nigerians’ disposable income and access to housing.
This is according to the Q4 2024 pension industry report released by the National Pension Commission, which revealed that 7,094 RSA holders accessed their pension contributions for residential mortgages, up from 3,804 in the previous quarter.
Despite the surge in applicants, the total amount disbursed for mortgages actually fell by 7.3%, from N32.62 billion in Q3 to N30.24 billion in Q4 2024.
The report noted: “During the quarter under review, a total of 7,094 RSA holders were approved to access up to 25% of their RSA balances for the purpose of equity contributions toward residential mortgage payments.
Of these, 1,902 contributors were from the private sector, while 5,192 were from the public sector, including both Federal and State employees. The total amount approved for disbursement under this initiative was N30.24 billion.”
In the preceding quarter, Q3 2024, 3,804 contributors were granted access to a portion of their RSA balances to fund equity contributions for housing.
Of these, 1,212 applicants were from the private sector, while 2,592 were public sector workers.
Commenting on the rising trend, Urban Planner and environmentalist Mr. Michael Simire linked the development to the country’s worsening financial conditions.
He said, “Money is not readily available in the economy for people to start building their own homes. So the economic situation is really affecting the real estate and mortgage sectors, while also negatively affecting the purchasing power of Nigerians leading to high number of undeveloped properties across the country. As such, RSA holders are capitalising on the window created by PenCom for contributors to use part of their pension savings to own their homes.”
Additionally, the report revealed that 8,130 RSA holders under the age of 50 accessed 25% of their savings due to temporary loss of employment. Of these, 7,494 were from the private sector, while 636 were from the public sector.
The report added, “The total sum of N22.85 billion was approved for disbursement to these RSA holders.”
This growing reliance on pension savings, both for home acquisition and unemployment relief, underscores the broader economic difficulties confronting many Nigerians.
