In Nigeria, Mr. Benson Okorie, a member of the Copen Group, highlighted the country’s alarming housing deficit of over 20 million and the low rate of home ownership, which stands at only 25%. Comparatively, countries like South Africa, Tunisia, and Ghana have higher rates of home ownership, with Ghana reaching 48% and Romania an impressive 96%. Mr. Okorie shared these statistics during his appearance on the program “Housing Today” on Saturday morning.
Discussing a new policy, Mr. Okorie emphasized that it now provides an opportunity for people to borrow from PenCom (Pension Commission) and take advantage of mortgage options. He noted that Nigeria has made progress, moving from a 25% equity contribution to 70%. However, individuals who have retired or are within three years of retirement may find it challenging to benefit from this scheme due to their limited capacity for substantial contributions. While the previous requirement was 25%, the new policy demands a 50% equity contribution to own a house.
Mr. Okorie expressed his satisfaction in assisting people to become homeowners through the initiatives undertaken by the Copen Group. He mentioned that various programs organized by the group have seen significant participation, and even those unable to attend have shown interest in learning about the latest developments in the housing sector. The effectiveness of the 25% pension equity contribution was corroborated by testimonials from individuals who have accessed it and shared their experiences on different platforms.
Highlighting the efficiency of the process, Mr. Okorie stated that obtaining a residential home now takes approximately 40 days. The procedure involves submitting the necessary documents, undergoing documentation, and then proceeding to the Pension Fund Administrator (PFA) and Pension Fund Custodian (PFC).
Mr. Okorie emphasized that the ongoing developments in the housing sector have generated excitement among the population. Real estate, being one of the key economic indicators, contributes significantly to addressing the housing problem. Furthermore, individuals can now own their own homes while still employed, without having to wait until retirement to access the keys. It is even possible to rent out the house and use the rental income to repay the loan.
The implementation of the new policy has made it easier for individuals to access mortgages, which had been a challenge in previous years. The policy allows for easy access to equity, which serves as the down payment for acquiring a home. This presents an amazing opportunity for people to become homeowners while still actively working.
Additionally, Mrs. Gift Ore, another member of the Copen Group, highlighted the positive impact of housing projects on the economy and job creation. She mentioned that collaboration is essential in the housing sector and emphasized the strong partnerships established with PMI (Primary Mortgage Institutions) and AG Mortgage Bank. The industry encourages mentorship and the involvement of young developers, allowing them to gain valuable experience and make their contributions.
Mrs. Ore also emphasized the importance of understanding one’s contribution status by visiting the PFA. To apply for contributions, certain requirements must be met, such as providing personal information and occupation details, and your PFA statement of account, and checklist. Furthermore, couples who wish to jointly own a property can make separate contributions towards the same house.