By Rosemary Iwunze

Demand for pension savings for home acquisition   rose by 86.5% in the fourth quarter of 2024    reflecting the impact of the harsh economic situation on   the purchasing power of Nigerians.

According to the fourth quarter 2024 pension industry report released by the National Pension Commission, PenCom, the number of RSA holders that accessed their pensions contributions for residential mortgage increased by 86.5 per cent Quarter-on-Quarter, QoQ, in the fourth quarter 2024, Q4’24, to 7094 from 3804 recorded in Q3’24.

However, the total amount disbursed to acquire the mortgage declined by 7.3 per cent to N30.24 billion in Q4’24 from N32.62 billion recorded in the previous quarter.

The report stated: “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 Q3’24, a total of 3,804 RSA holders were approved to access up to 25% of their RSA balances towards payment of equity contributions for residential mortgage. Out of the 3,804 applicants whose benefits were approved, 1,212 were from the private sector, while the remaining 2,592 were from the public sector.”

Speaking on the development, Mr. Michael Simire, an Urban Planner and environmentalist, stated that the worsening economic situation of the country is negatively affecting Nigerians depriving them ability to owning own homes from regular cash flow.

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.”

The report further stated: “During the quarter under review, a total of 8,130 RSA holders under the age of 50 were approved to access 25% of their RSA balances due to temporary loss of employment. Of this number, 7,494 were from the private sector, while 636 were from the public sector, comprising both Federal and State employees. The total sum of N22.85 billion was approved for disbursement to these RSA holders”.