Keep up with the latest news and be part of our weekly giveaways and airtime sharing; follow our WhatsApp channel for more updates. Click to Follow us

More Nigerians are turning to their pension savings to secure residential mortgages, with a significant increase in the number of Retirement Savings Account (RSA) holders using their funds for this purpose. 

According to the Pension Industry Performance Dashboard released by the National Pension Commission (PenCom), the number of RSA holders who transferred part of their pension savings into residential mortgages increased by 65.03% quarter-on-quarter (QoQ) to 3,804 in the third quarter of 2024 (Q3’24) ¹.

This represents a substantial growth from the 2,305 transfers recorded in the second quarter of 2024 (Q2’24). The value of funds transferred in Q3’24 also increased by 81.2% to N32.62 billion, up from N18 billion in Q2’24.

RSA holders are allowed to utilize up to 25% of their RSA balance as equity contributions for residential mortgages. This provision, introduced by the Pension Reform Act 2014, aims to address Nigeria’s housing deficit by enabling pension contributors to access their retirement savings for mortgage payments².

The pension industry has also seen significant growth, with total pension fund assets increasing by 4.4% to N21.38 trillion in Q3’24. Total RSA registrations rose by 1.4% to 10.53 million in Q3’24, indicating a growing adoption of the pension system.

The report highlighted notable achievements, including 118,339 new RSA registrations in the year-to-date period for 2024. Over the past five years, RSA registration has increased by 13.93%, with 61% of registered members being male and 38% female.

“Cumulative contributions since the inception of the Contributory Pension Scheme (CPS) reached N10.97 trillion as of Q3, 2024, with the public sector contributing N5.71 trillion while the private sector contributed N5.25 trillion.

“Pension Contribution has achieved significant growth in the past five years. The public sector contributions rose from N3.43 trillion to ¦ 5.71 trillion, while the private sector increased from N3.27 trillion to N 5.25 trillion.

“The total Micro Pension Registration count from inception to Q3 2024 stood at 164,031. Specifically, the number of informal sector workers with funded RSAs was 12,241. From 2020 to Q3 2024, the number of funded RSA registrations increased by 5,971. The total amount saved in the RSAs of Micro Pension Participants was N967,194,762.23 as of Q3 2024, which represented a growth of N878,065,827.85 from the 2020 figure of N89,128,934.38.

The National Pension Commission (PenCom) has expressed satisfaction with the growth of the pension industry, citing the increasing adoption of the Contributory Pension Scheme (CPS) by Nigerians.

According to the Commission, “By Q3 2024, there were 10,536,088 Registered Retirement Savings Accounts (RSAs), representing a growing adoption of the pension system. Notable highlights include 118,339 new RSA registrations in the year-to-date period for 2024, reflecting consistent awareness and inclusion efforts.”

The Commission also noted that “Over the past five years, RSA registration increased by 13.93%, from 9,215,788 in Q4’2020 to 10,499,358 in Q3 2024. Of the registered members, 61% were male and 38% were female during this period.”

Commenting on the growth of pension contributions, the Commission stated that “Cumulative contributions since the inception of the Contributory Pension Scheme (CPS) reached N10.97 trillion as of Q3, 2024, with the public sector contributing N5.71 trillion while the private sector contributed N5.25 trillion.”

The Commission also highlighted the growth of pension contributions over the past five years, noting that “Pension Contribution has achieved significant growth in the past five years. The public sector contributions rose from N3.43 trillion to N5.71 trillion, while the private sector increased from N3.27 trillion to N5.25 trillion.”

The Micro Pension Scheme, which was introduced to capture the informal sector, has also recorded significant growth, with the Commission noting that “The total Micro Pension Registration count from inception to Q3 2024 stood at 164,031. Specifically, the number of informal sector workers with funded RSAs was 12,241.”

The Commission expressed optimism about the future of the pension industry, citing the growing adoption of the CPS and the increasing awareness of the importance of pension savings.

Please don’t forget to “allow the notification” so you will be the first to get our gist when we publish it. 
Drop your comment in the section below, and don’t forget to share the post.