‘Use Pension Funds For Mortgage’

Stakeholders in the real estate sector have urged the federal government and managers of pension funds to make such funds available for mortgage so as to ensure that demand for housing by those contributing to the fund is met.

The real estate professionals have posited that the pension funds have not yielded the desired result, as those who had contributed to it have not been adequately compensated, as some of them on retirement fall back on virtually nothing.

Speaking in an interaction with The Tide, a property consultant in Port Harcourt, Robert Emesi, explained that huge amount of money raised through pension fund contribution have actually not been adequately managed, whereas it was meant to be utilised for the benefit of pensioneers.

Robert who is a member of the Nigerian Institute of Estate Surveyors and Valuers (NIESV) said that one problem with the pension funds in Nigeria is that Nigerians don’t trust themselves, adding that people always look out for easy means of making money for themselves.

According to him, “The long gestation period makes it difficult in providing mortgage for development and pension managers use the fund to trade in the capital market, without considering the benefit it will give to those contributing to it, if it is used for mortgage.

On his part, Akin Ademola, a structural engineer and the chief executive officer of MEGSTRO Tech Limited posited that mortgage is having serious challenge in Nigeria because financial institutions have lost so much money through loans that could not be recovered.

He said that in advanced countries they maintain a data base on issues and on mortgage transactions, pointing out that the issue of mortgage will be easier, if there is a regulatory system in place in the country.

Ademola therefore urged government and indeed the pension fund managers to, instead of trading with pension fund, plough it back to mortgage so as to make funds available for housing development which will be more beneficial to workers and pensioneers.

Corlins Walter