Pension Fund Administrators (PFAs) have in the last six months disbursed a total of N7 billion to Retirement Savings Account holders for residential mortgage in the last six months, the Chief Executive Officer (CEO) of the Pension Fund Operators Association of Nigeria (PenOp), Mr Oguche Agudah, has disclosed.
Agudah, while speaking at a virtual media parley over the weekend, noted that the amount was disbursed between March and September 2023, adding that the figure may double in the coming year as many people are struggling to have their own homes.
It could be recalled that the National Pension Commission (PENCOM) in 2022 issued guidelines on how to access a retirement savings account (RSA) balance towards payment of equity contribution for a residential mortgage.
Based on the guidelines, a maximum of 25 per cent of the total RSA could be used as equity contribution for residential mortgage purposes.
The PenOp boss also revealed that a lump sum of N1.63 trillion was paid to 443,000 retirees as life annuity in the last 15 years.
He noted that the amount increased from N1.51 billion paid to 331 applicants in the third quarter of 2011 to N665.13 billion paid to 111,708 applicants in the second quarter of 2023.
Speaking further on the gains, pains and way forward for the industry as it prepares to mark 20 years in 2024, Agudah said, “The industry has grown from 2,543,178 clients in 2007 to 10,023,314 in July 2023.”
Speaking further, he said, “On death benefits, a total of N356.32 billion was paid to 91,214 beneficiaries in the second quarter of 2023. Also, a total of N208.86 billion was paid to 475,000 Nigerians who lost their jobs from the 25 per cent RSA balance.”
He added that the investments made by the PFAs in the equity market have grown from N344.69 billion (15.36%) in the third quarter of 2011 to N1.54 trillion (8.88%) in the third quarter of 2023.
On the association’s plan for 2024, he said there will be more focus on micro pension.
