Good one. #Ghana
Hon. Ahmed Ibrahim says he wants to introduce a new National Housing Levy, but he is scared the people of Ghana will revolt.
He should be. And not because fellow countrymen and women hate paying for development, but because we know how to count.
Before anyone proposes another payroll deduction to close our 1.8 million-unit housing deficit, run the maths on the laws and money we already have:
▪️Eighteen years ago, Parliament passed the National Pensions Act, 2008 (Act 766). Sections 103(2) and 114(2) explicitly allow every worker to use their mandatory Tier 2 and voluntary Tier 3 pension funds to secure a mortgage for a primary home.
▪️By the end of 2025, private Tier 2 and Tier 3 pension funds had accumulated a staggering GH₵79.8 billion. Yet according to Table 28 of the NPRA’s audited Annual Report, out of more than 3 million contributors, how many workers got approval to use their pension for a primary home mortgage in a full year? Just 20.
▪️Why did only 20 people succeed? Because Section 103 only gives the bank a paper guarantee, not cheap cash liquidity, leaving banks charging 24% to 28% interest on a standard 3-bedroom Accra house that now costs GH₵890,000. At 24% interest, the monthly payment is GH₵18,000. A teacher or nurse earning GH₵6,000 is disqualified at the bank’s front door.
▪️Meanwhile, three borders east in Benin, a brand-new 3-bedroom social villa at Ouèdo costs US$37,500 (30–40% cheaper than Ghana), and any public or private worker can move in with zero deposit and pay roughly GH₵2,500 (97,000 FCFA) a month over 25 years under a rent-to-own scheme.
▪️Benin didn't achieve that by slapping a new tax on workers to subsidise cement cartels and inflated contractor bills. Benin's state absorbed the 30% infrastructure surcharge (roads, storm drains, water mains, and power grids) before pricing the houses, and set up a bank-led delivery vehicle (SImAU) to buy materials in bulk across 10,800 homes at once.
We don't need a new National Housing Levy. We need to:
1. Channel just 5% (GH₵4 billion) of our existing GH₵79.8B Tier 2/3 pension pool into a privately governed housing SPV (controlled by Trustees, TUC/CLOGSAG, and banks—zero politicians) to fund single-digit rent-to-own mortgages.
2. Synchronise 15% of existing Roads, Energy (ECG), Drainage (Hydro), and Ghana Water capital budgets to service housing land banks upfront instead of retrofitting unplanned slums at triple the cost.
3. Break the asymmetric pricing cartel in cement and steel through bulk factory-gate off-take and CSIR pozzolana/burnt clay brick mandates.
4. Partner with Stools and Families on a Land-for-Equity basis under Act 1036.
You cannot tax a nation into affordability while leaving a cartelised, high-cost supply chain untouched. Fix the plumbing before turning on the tap.
What stops us from using the GH₵79.8 billion we already have under Act 766 before asking workers for another pesewa?
By Sitsofe John
#Ghana #HousingDeficit #PublicPolicy #Act766 #Pensions #EconomicGovernance
Oct 24, 2026 · 10:36 PM UTC
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