Gov’t Wants New Housing Levy Tax to Build Houses – Nana Kwadwo Jantuah Proposes Alternatives

In an Official Facebook Post on 3 November 2026, Nana Kwadwo Jantuah has questioned the proposal to introduce a new housing levy to finance the construction of houses, arguing that government should first explore existing pension funds and alternative financing arrangements before imposing additional taxes on workers.

Jantuah’s central argument is that Ghana already has substantial financial resources within the Tier 2 and Tier 3 pension schemes that could be mobilised to support affordable homeownership. He cites an estimated GH¢79.8 billion in these pension funds and argues that existing legislation, particularly the National Pensions Act, 2008 (Act 766), provides a framework that could support the use of pension funds for housing-related investments.

He is particularly concerned about the limited number of workers who have reportedly benefited from existing pension-backed housing arrangements. According to the figures he presented, only 20 out of approximately three million workers received approval within one year. He attributes the difficulty partly to high bank interest rates, which he puts between 24 and 28 per cent.

He further illustrates the affordability challenge by comparing Ghana’s housing costs with a housing arrangement in Benin. According to the figures he shared, a three-bedroom house in Benin costs approximately US$37,500, with a rent-to-own payment arrangement of about GH¢2,500 monthly over 25 years and no initial deposit. He attributes the difference to government investment in roads and water infrastructure, bulk purchasing of cement and the use of local building materials. These figures and the comparison are claims presented in his post and would require independent verification.

To address Ghana’s housing affordability challenges, Jantuah proposes four measures:

* Mobilise existing pension resources: He suggests using five per cent of pension funds, estimated at GH¢4 billion, to provide affordable rent-to-own housing loans.

* Prepare land and infrastructure: He wants government to use existing road and water budgets to provide essential infrastructure before housing construction begins.

* Reduce construction costs: He proposes bulk purchasing of cement and greater use of locally produced building materials to reduce the cost of construction.

* Partner with traditional authorities: He recommends working with chiefs who can make land available for housing projects, while government and other partners undertake construction.

His proposal comes amid renewed discussions about financing affordable housing in Ghana. On 22 October 2026, the Minister for Works, Housing and Water Resources, Ahmed Ibrahim, proposed a National Housing Levy as a dedicated source of funding for affordable housing delivery. The proposal was presented as part of efforts to address the country’s housing deficit, which the minister estimated at 1.8 million units.

However, the pension financing question requires careful consideration. Section 103 of the National Pensions Act, 2008 (Act 766), allows a pension scheme to permit a member to use accrued benefits to secure a mortgage for the acquisition of a primary residence. The law does not mean that government can freely withdraw five per cent of pension funds and distribute it as housing loans. Pension assets are subject to investment rules, trustee responsibilities and safeguards designed to protect contributors’ benefits.

The National Pensions Regulatory Authority has previously encouraged workers to take advantage of the provisions allowing pension benefits to support mortgages for primary residences. This suggests that pension-backed homeownership is not an entirely new idea, although the practical challenges of affordability and access remain important.

Jantuah’s intervention therefore shifts attention from simply finding additional revenue through taxation to examining whether existing financial resources, infrastructure budgets and construction strategies can be used more effectively.

His central argument is that introducing another levy may not solve the housing problem if the underlying cost of construction and the financing arrangements remain beyond the reach of ordinary workers.

He is calling for government to address the high cost of building and make homeownership financially realistic before placing additional tax burdens on the public.

Source: Nana Kwadwo Jantuah, Official Facebook Post, 3 November 2026.