Pension Fund Operators (PFOs) seemed be to cautiously investing in real estate properties as Retirement Savings Account (RSA) holders are gradually showing interest in the pension residential mortgage policy recently enacted by National Pension Commission (PenCom).
Findings by Inspenonline revealed that pension operators in December 2022, invested N217.60 billion in real state portfolio, while N218.13 billion was invested in January 2023 and N220.51 billion in February.
According to PenCom, it has only granted approval to applications by 11 retirement savings account holders seeking to own houses through pension residential mortgage scheme.
It was 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.
An expert who didn’t not want to be named, said pension operators are cautious due to demand from RSA holders on the policy.
He noted that the low demand may stem from strenuous rules stated in the policy, which many of the retirement savings account holders may not be able to meet.
According to him 18 applications from over 9.92 million retirement savings account holders and granting 11 of them approval do not show that people are interested in the policy.
He submitted that the policy ought to transform real estate sector, adding that as the sector thrives, more pension funds would be invested in it.
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
Heritage Bank Plc
Keystone Bank Limited
Polaris Bank Limited.
Stanbic IBTC Bank Plc
Sterling Bank Plc
Titan Trust Bank Limited
Unity Bank Plc
Wema Bank Plc
Globus Bank Limited
Parallex Bank Limited
PremiumTrust Bank Limited
Providus Bank Limited
SunTrust Bank Nigeria Limited
Jaiz Bank Plc