Nigeria’s N31 trillion pension industry is emerging as one of the country’s strongest untapped solutions to its worsening housing crisis, with industry operators arguing that mobilising a fraction of retirement savings into housing finance could significantly narrow the nation’s estimated 28 million housing deficit, while delivering stronger long-term returns for contributors.
The Pension Fund Operators Association of Nigeria (PenOp), in its first Sectoral Report tittled: ‘Unlocking Housing Finance Through Pension Capital’, said the country’s biggest challenge is no longer the availability of capital but the inability to connect long-term institutional funds with long-term housing needs.
Nigeria currently has about N30.94 trillion in pension assets under management, growing by roughly N5 trillion annually, while the housing sector faces an estimated financing gap of between N21 trillion and N59 trillion. Yet, despite the obvious alignment between long-term pension savings and long-term housing finance, less than one percent of pension assets are invested
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