The number of Nigerians tapping into their pension savings to fund home purchases surged by 86.5% in the fourth quarter of 2024, reflecting the growing financial strain and weakening purchasing power across the country.
According to the latest pension industry report by the National Pension Commission (PenCom), 7,094 Retirement Savings Account (RSA) holders were granted approval to access part of their pension funds for residential mortgage payments in Q4 2024 up from 3,804 in the previous quarter.
Under the policy, RSA holders can withdraw up to 25% of their pension balances for equity contributions toward home acquisition. Out of the approved beneficiaries in Q4, 1,902 were from the private sector, while 5,192 were public sector employees, including federal and state workers.
Despite the rise in the number of applicants, the total amount disbursed for mortgage purposes fell by 7.3%, from ₦32.62 billion in Q3 to ₦30.24 billion in Q4.
Commenting on the trend, urban planner and environmentalist Michael Simire attributed the increased demand to Nigeria’s challenging economic climate. He noted that many citizens are struggling to fund home construction or purchases from regular income sources.
“People don’t have the liquidity needed to start building or buying homes. This economic pressure is slowing down the real estate sector and increasing the number of uncompleted properties. That’s why many RSA holders are using the PenCom initiative as a lifeline to secure housing,” Simire said.
PenCom’s report also highlighted that 8,130 RSA holders under the age of 50 were approved to withdraw 25% of their savings due to temporary job loss in Q4 2024. Among them, 7,494 were from the private sector, and 636 were public employees. A total of ₦22.85 billion was disbursed to support these individuals.
This development underscores the dual challenges of housing affordability and unemployment, both of which continue to strain the country’s social and financial infrastructure.
