PenCom DG, Aisha Dahir-Umar

The National Pension Commission (PenCom) yesterday, granted approval to applications by 11 Retirement Savings Account (RSA) holders seeking to own houses through the pension residential mortgage scheme.

Inspenonline gathered that PenCom received 18 applications from RSA holders, but seven of them were turned down because the banks used for the applications didn’t have the mandatory pension compliance certificates that is required to enable private companies execute government business.

This medium gathered that PenCom anticipates more RSA holders to follow stipulated guidelines for residential mortgage scheme to enable them easily secure approval.

PenCom had approved 34 mortgage banks and 29 commercial banks for full implementation of acquisition of residential mortgages by RSA holders.

The commercial banks are: Access Bank Plc
Fidelity Bank Plc
First City Monument Bank Limited
First Bank of Nigeria Limited
Guaranty Trust Holding Company Plc
Union Bank of Nigeria Plc
United Bank for Africa Plc
Zenith Bank Plc
Citibank Nigeria Limited
Ecobank Nigeria
Heritage Bank Plc
Keystone Bank Limited
Polaris Bank Limited.
Stanbic IBTC Bank Plc
Standard Chartered
Sterling Bank Plc
Titan Trust Bank Limited
Unity Bank Plc
Wema Bank Plc
Globus Bank Limited[3]
Parallex Bank Limited
PremiumTrust Bank Limited
Providus Bank Limited
SunTrust Bank Nigeria Limited
Optimus Bank
Signature Bank
Jaiz Bank Plc
TAJBank Limited

PenCom and Pension Operators Association of Nigeria (PenOp) have highlighted the requirements for the Retirement Savings Account holders to access their equity contributions for the acquisition of residential mortgage.

“Where 25 per cent is insufficient as equity contribution, RSA holder shall deposit the difference with the mortgage lender,” Kangiwat 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.

Kangiwa said the objective of 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.

President, PenOp/Managing Director, Stanbic IBTC Pension Managers, Olumide Oyetan, emphasised the need for stakeholders to work together to ensure the successful implementation the guidelines.

He said the successful implementation of this initiative would improve people’s welfare and move the country forward.