RismadarVoice Reporters
October 5, 2026
Thousands of Nigerian workers are increasingly turning to their pension savings to finance home ownership as rising property prices and declining purchasing power make it harder for many households to raise mortgage deposits.
Data from the National Pension Commission, PenCom, showed that 28,437 Retirement Savings Account holders accessed ₦92.70 billion in the first quarter of 2026 as equity contributions for residential mortgages.
The figure represents a significant increase from the fourth quarter of 2025, when 7,399 contributors accessed ₦28.27 billion for the same purpose.
The sharp rise highlights growing demand for alternative sources of housing finance as workers contend with higher land prices, construction costs, rents and mortgage requirements.
Under PenCom’s residential mortgage guidelines, eligible RSA holders can access up to 25 per cent of their pension savings as an equity contribution towards acquiring residential property.
Contributors must have made pension contributions for at least 60 months to qualify under the arrangement.
Where 25 per cent of a contributor’s RSA balance exceeds the required equity contribution, only the amount necessary for the mortgage can be accessed. Where the available amount is insufficient, the applicant is expected to provide the difference in accordance with the applicable mortgage requirements.
The increasing use of pension savings comes amid persistent concerns over Nigeria’s housing deficit and limited access to affordable long-term mortgage financing.
Nigeria Labour Congress President Joe Ajaero has also raised concerns about difficulties workers face in accessing loans through the National Housing Fund, NHF.
Ajaero said administrative delays and other obstacles had made it difficult for some workers to benefit from the housing scheme despite regular deductions from their earnings.
He argued that lengthy processing periods could discourage applicants and called for improvements that would make housing finance more accessible to workers.
Urban planner Michael Simire said economic pressures, including the depreciation of the naira and rising property development costs, had made home ownership increasingly difficult for many Nigerians.
He said the pension-backed mortgage initiative could provide another route for eligible workers struggling to raise the equity contribution required by mortgage lenders.
Director of the Centre for Pension Rights Advocacy, Ivor Takor, described the inclusion of residential housing within the pension framework as an important welfare initiative.
Takor, however, called for broader access to affordable housing finance for Nigerians who are not covered by the contributory pension system, including through moderate-interest mortgages and other housing-support measures.
Property consultant Meckson Innocent Okoro also said allowing workers to deploy part of their pension savings towards residential property could support demand in the housing market at a time of rising construction costs.
Former President of the Pension Fund Operators Association of Nigeria, Olumide Oyetan, said effective implementation of the mortgage initiative could improve contributors’ welfare while supporting wider economic activity.
PenCom figures showed that Nigeria’s pension industry had 11.18 million registered Retirement Savings Accounts and assets under management of ₦29.52 trillion as of March 31, 2026.
The growing number of contributors using part of those savings for residential mortgages underscores the increasing role of pension assets in efforts to expand access to homeownership.
