Access to 25% of RSA by workers for a mortgage will boost the housing sector and the economy -Experts

Stakeholders in the housing sector, including the Chairman of the Nigerian Institute of Quantity Surveyors (NIQS), Mr. Olayemi Shonubi; Former President, Nigerian Institution of Estate Surveyors and Valuers, Lagos Branch, Mr. Stephen Jagun; The Executive Director of the Housing Advocate Network of Nigeria (HDA), Mr. Festus Adebayo, and the Executive Secretary/CEO of the Mortgage Banking Association of Nigeria (MBAN), Kayode Omotosho; welcomed the National Pensions Commission's decision to allow workers to use 25 percent of their retirement savings accounts as mortgages.

The new initiative, they said, would help boost the mortgage and housing sectors of the economy.

Speaking to Nigerian Tribune, the Chairman of NIQS, ​​Mr. Olayemi Shonubi, said the initiative will provide a room for people working in organized institutions to own their homes before retirement.

Apart from that, he said it would help to fill the housing gap in the country and help develop the mortgage industry.

Sonubi also added that implementing the idea would reduce corruption among public officials, explaining that most of them steal government money due to fear of where they will live after retirement .

"But now that they know they can access some of their retirement savings for a mortgage to own a home, the desperation to steal government money will lessen," he said. declared.

He commended PenCom management and other stakeholders for the new policy

Former President of NIESV, Lagos Branch, Mr. Stephen Jagun, described the new initiative as a welcome development.

According to him, with the way pension funds are administered in Nigeria, contributors are already losing their lot in the system.

However, with the new policy, he said people would see a window of opportunity for the use of their funds.

“Some people think that if they have a choice, they won't participate. While some want to avoid it. I know people who don't even care about the funds because of the caucuses related to accessing the fund.

"With this now, people will see a window of opportunity for the use of their funds," he said.

Jagun added that he could also indirectly make more funds available for the real estate market, hoping that implementers won't thwart the idea.

He pointed out that the new policy will make less money available in the program for the government to borrow.

“The more they see that there is so much money out there, the more they may be tempted to look for funds in that direction. economy and contributors.

"Contributors, so to speak, will be happy to enjoy their sweetness during their lifetime. Because many had died without reaping the rewards of the scheme."

The comments from Shonubi and Jagun followed a statement from PenCom last Friday that it approved the publication and immediate implementation of the guidelines on access to RSA balance for the payment of the capital contribution for the residential mortgage by RSA holders.

The statement reads: "PenCom is pleased to advise all stakeholders and the general public, in particular RSA holders, that the Commission has approved the publication and immediate implementation of the Guidelines on access to the RSA balance for the payment of the capital contribution for the residential mortgage by RSA Holders.

"The approval is in line with section 89(2) of the Pensions Reform Act 2014, which allows RSA holders to use part of their RSA balance for net worth payment of a residential mortgage."

Also expressing his joy at the new idea, Mr. Festus Adebayo described the new policy as the product of collective advocacy, adding that success should be seen as a call to duty, adding that one should do more in the area of ​​housing and mortgages. subsector.

He hailed the giant leap, saying, "It's the product of collaborative advocacy," urging stakeholders in the housing and mortgage sub-sector to do more.

Furthermore, Mr. Kayode Omotosho on HDAN's social platform gave an insight into the birth of this policy.

He said, "It started quietly as an advocacy issue with PenCom which originated from MBAN; which was later turned into a full advocacy issue by stakeholders on the platform of the former Nigerian program Housing Finance Fund (NHFP).

"However, all ongoing efforts were eventually coordinated over the past few months with PenCom by FSS2020 and MBAN, resulting in the broad guidelines issued by PenCom on the idea."

While commending Nigerians in general and those who have worked particularly hard to bring the new policy into being, Omotosho noted that there is still much to be done to ensure smooth implementation.

He said, "Its breadth and depth would only be fully realized with the establishment and take-off of the Nigeria Mortgage Guarantee Company (NMGC), a Cred...