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By Ngozi Onyeakusi—The President, Pension Fund Operators Association of Nigeria (PenOp) , Olumide Oyetan, has assured that a successful implementation of residential mortgage initiative which allows contributors to access their equity contributions for the acquisition of residential mortgage would improve people’s welfare and move the country forward.
Oyetan stated this at the 2022 PenOp Annual Media parley held in Lagos.
He called on relevant stakeholders to work together to ensure the successful implementation the guidelines.

Presenting the theme paper at the event, the Head of Investment Department, the National Pension Commission PenCom, Ibrahim Kangiwa assured that rationale behind the initiative was to provide housing for first time home owners and improve the standard of living of RSA holders under the CPS by facilitating their ownership of residential homes during their working life.
According to him contributors under the Contributory Pension Scheme (CPS) to be eligible to use their RSA balance for acquisition of residential mortgages, must have contributed for five years (60 months) cumulative of employer and employee’s mandatory contributions.
He noted the same thing was applicable to the contributors under the Micro Pension Plan (MPP), adding that married couples, who individually met the eligibility criteria, were also eligible.
On authorised limit for equity contribution that qualifies a contributor, Kangiwa put the maximum allowed at 25 per cent of the RSA balance, noting that “where 25 per cent of RSA balance is more than equity contribution, the RSA holder can only access the amount equivalent to equity contribution required.
“Where 25 per cent is not sufficient for equity contribution, RSA holder may utilise Voluntary Contribution (VC) in line with the Voluntary Contribution guidelines.
“Where 25 per cent is not sufficient for equity contribution, Micro Pension (MP) contributor may utilise contingency portion in line with MP guidelines.
“Where 25 per cent is insufficient as equity contribution, RSA holder shall deposit the difference with the mortgage lender,” Kangiwa explained.
Those exempted from this initiative, according to Kangiwa, include RSA holders that have less than three years to retirement; existing retirees on CPS; exempted persons under the PRA 2014 and RSA holders who do not have both employer and employee’s mandatory contributions for a cumulative minimum period of 60 months.
He said that equity contribution was not for refinancing existing mortgage, outright purchase of property and purchase of land, noting that the property shall be for residential purpose only.

Also presenting a paper with the theme: Pension: An Opportunity to Own Your Own Home, An X-Ray of the New RSA Plan On Home Ownership” , the Chief Executive Officer (CEO) of PenOp, Oguche Agudah gave the assurance the policy which has come to stay will continue to be improved upon and revised as the regulator, the National Pension Commission (PenCom) has promised.
He regretted that many Nigerians do not have a home adding that Nigeria is the lowest in the world when it comes to access to house.
He added that what the pension regulator, PenCom did was hopefully to ensure that people own their houses through Retired Savings Account ( RSA).
He called on media create awareness to educate the public on the policy adding that the industry wanted many people to know about the policy.