A sharp rise in rental prices across Lagos, Abuja, Port Harcourt and other major Nigerian cities is forcing more citizens to turn to their pension savings to secure homes.
Data from the National Pension Commission shows that applications for pension-backed residential mortgages have surged to record levels in the first quarter of 2025. Under the Pension Reform Act 2014, contributors to the Retirement Savings Account (RSA) are allowed to access part of their savings for equity contributions towards home ownership.
In the first three months of 2025 alone, N39.86 billion was released to 8,408 RSA holders to support mortgage equity contributions. This represents the highest quarterly payout since the scheme was introduced.
Analysts say the development highlights both the pressures of Nigeria’s housing crisis and the growing reliance on long-term savings to offset immediate economic hardship. With rental costs climbing beyond the reach of many households, industry watchers expect pension-backed mortgages to remain a key pathway to affordable housing for workers.
