11 RSA holders get PenCom’s approval for residential mortgage

Director General PenCom, Aisha Dahir-Umar

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Chuks Udo Okonta

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.

Of the 34 mortgage banks, 18 are from Lagos, 8 from Abuja and 8 of them are from other states.

The mortgage lenders from Lagos are Abbey Mortgage Bank Plc; Brent Mortgage Bank LTD; AG Mortgage Bank Plc; Centag Savings & Loans; City Code Savings & Loans; First Trust Mortgage Bank; Global Trust Mortgage; Haggai Mortgage;t Homes-Base Mortgage; Imperial Homes; Jubilee-Life Mortgage Bank; Lagos Building & Investment; Prudential Mortgage Bank and Refuge Homes Savings & Loans.

Others from Lagos include Resort Savings & Loans; Safetrust Mortgage Bank; STB Building Society; Union Homes and Mayfresh Mortgage Bank.

Those from Abuja are Aso Savings & Loans; FHA Homes Ltd; First Generation Homes; Infinity Trust Mortgage Bank; MDSL Mortgage Bank LTD; Nigeria Police Mortgage Bank and Platinum Mortgage Bank

The remaining are from other states: Akwa Savings & Loans Ltd and Mutual Alliance both from Akwa Ibom; Coop Savings & Loans from Oyo State; Delta Trust Mortgage Bank; Gateway Mortgage Bank, Ogun State; Jigawa Savings & Loans, Jigawa state; Kebbi Stare Homes,t Kebbi State and Living trust formally Omoluabi, Osun State.

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.


According to the Head of Investment Department, PenCom, Ibrahim Kangiwa, for contributors under the Contributory Pension Scheme (CPS) to be eligible to use their RSA balance for acquisition of residential mortgages, they must have contributed for five years (60 months) cumulative of employer and employee’s mandatory contributions.

He said the same thing was applicable to the contributors under the Micro Pension Plan (MPP), adding that married couples, who individually met the eligibility criteria, were also eligible.

On authorised limit for equity contribution that qualifies a contributor, Kangiwa put the maximum allowed at 25 per cent of the RSA balance, noting that “where 25 per cent of RSA balance is more than equity contribution, the RSA holder can only access the amount equivalent to equity contribution required.

“Where 25 per cent is not sufficient for equity contribution, RSA holder may utilise Voluntary Contribution (VC) in line with the Voluntary Contribution guidelines.

“Where 25 per cent is not sufficient for equity contribution, Micro Pension (MP) contributor may utilise contingency portion in line with MP guidelines.

“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.

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