FirstBank of Nigeria Limited, in partnership with the Ministry of Finance Incorporated (MOFI) and ARM Investment Managers, has launched a single-digit mortgage housing scheme designed to expand access to affordable home ownership and reduce Nigeria’s estimated housing deficit of between 20 and 28 million units.
The initiative, unveiled in Abuja on Tuesday, introduces long-term mortgage financing at interest rates significantly below prevailing market levels, with repayment tenors extending up to 20 years. Stakeholders say the programme is expected to ease pressure on prospective homeowners, stimulate housing construction, and deepen economic inclusion across the country.
Speaking at the launch, the Managing Director and Chief Executive Officer of FirstBank, Mr. Olusegun Alebiosu, said the scheme represents a major shift in Nigeria’s housing finance framework, particularly at a time when high interest rates have continued to limit access to mortgage credit.
According to Alebiosu, offering mortgages at single-digit interest rates in the current economic environment demonstrates a deliberate effort to combine social impact with sustainable financial returns. He said the programme was structured to make home ownership achievable for more Nigerians while supporting growth across the construction and real estate value chain.
He explained that the availability of long-term mortgages at rates far below commercial lending benchmarks would significantly reduce repayment burdens for households, enabling more families to transition from renting to ownership. Alebiosu added that the initiative would also unlock large-scale housing development nationwide by improving developers’ access to off-take guarantees and predictable demand.
Beyond individual home ownership, the FirstBank chief said the construction of thousands of housing units under the scheme would create employment opportunities for artisans, contractors, suppliers, and other players in the construction ecosystem. He noted that mortgage repayments would be recycled into new housing projects, creating a self-sustaining financing model capable of supporting housing delivery and job creation over the long term.
Also speaking, the National Coordinator of the MOFI Real Estate Investment Fund (MREIF), Mr. Sani Yakubu, said the programme was designed to avoid the pitfalls that undermined previous public housing initiatives. He described the scheme as market-driven, transparent, and structured for long-term sustainability.
Yakubu disclosed that MREIF had recently been listed on the Nigerian Exchange with an initial ₦250bn tranche funded through a combination of public and private sector investments. He said the fund is regulated by the Securities and Exchange Commission, independently rated, and structured as an A-grade tradable investment, measures aimed at strengthening investor confidence and insulating the programme from policy inconsistencies.
According to him, mortgage loans under the scheme run for up to 20 years and are refinanced by the Nigerian Mortgage Refinance Company, a feature he said enhances liquidity and stability within the housing finance system. He added that beneficiaries are required to make a 10 per cent equity contribution, while mortgage interest rates are set at about 9.75 per cent.
Yakubu further revealed that the initiative provides off-take guarantees for developers, ensuring that completed housing units are matched with qualified buyers. He said this structure reduces project risk, accelerates construction timelines, and encourages private sector participation in housing delivery.
He noted that the broader programme is backed by a ₦1tn funding framework registered with the SEC, starting with the ₦250bn pilot tranche. According to him, the scale and regulatory framework of the fund are intended to attract sustained private capital into Nigeria’s housing sector.
In her remarks, the Managing Director of ARM Investment Managers Limited, Ms. Kai Orga, said the partnership with FirstBank would fast-track mortgage approvals and simplify access to housing finance for eligible Nigerians. She disclosed that ARM had already facilitated mortgage disbursements exceeding ₦75m to more than 110 clients, adding that approvals under the new arrangement could be completed within four to six weeks.
The initiative, officially known as the Ministry of Finance Incorporated Real Estate Investment Fund, is a public-private housing programme introduced under the administration of President Bola Tinubu. It is backed by the Federal Government through MOFI, powered by FirstBank, and managed by ARM Investment Managers.
Stakeholders at the launch said the programme represents one of the most structured attempts in recent years to address Nigeria’s housing deficit through a blend of public sector support, private capital, and long-term financing. They expressed optimism that sustained implementation would improve access to affordable housing, strengthen the construction sector, and contribute to broader economic growth.
