The Bankers’ Committee has expressed willingness to partner the National Pension Commission (PenCom) to tap into the 25 percent of N2 trillion pension funds PenCom is willing to release to contributors as collateral for mortgages. The Bankers’ Committee is the umbrella body for officials of the Central Bank of Nigeria (CBN) and Managing Directors of deposit money banks (DMBs).
There are over N9 trillion pension asset and twenty-five percent of that amounts to over N2 trillion. Speaking during a press briefing after the meeting in Abuja on Thursday, the MD FSDH Merchant Bank, Hamda Ambah, said the committee also resolved that banks should support the pension industry to release up to 25 per cent of the N9tn pension fund assets for the contributors of the fund to use as equity injection towards owing houses.
She said, “25 percent of N9tn is worth over N2tn and this fund can be used to stimulate demand for mortgage loans in our economy.” “It was agreed that the Central Bank would talk to fellow regulators and also work with government of various states to make the process of land transfer and titling a lot easier so that many more people across the nation can access mortgage financing thereby stimulate demand in our economy.” The committee also said the decision of President Muhammadu Buhari to retain the apex bank governor was good for financial stability and economic growth. It said the move would also help to ensure the continuity of the export stimulation programme of the CBN. On the creative industry intervention fund, the committee said it is set to commence the disbursement of funds under the Creative Industry Financing Initiative.
Originally published in Daily Trust