The Housing Development Advocacy Network (HDAN) has welcomed the introduction of a 9.75 percent mortgage facility by FirstBank of Nigeria under the Mortgage Refinancing and Equity Investment Fund (MREIF), describing the move as a significant boost to homeownership and affordable housing finance in Nigeria.
In a statement issued in Abuja, the Executive Director of HDAN, Festus Adebayo, said the initiative marks a positive shift in the country’s housing finance landscape, particularly at a time when high interest rates have limited access to mortgages for most Nigerians.
According to him, mortgage rates in Nigeria have historically ranged between 18 and 25 percent, making structured home financing inaccessible to low- and middle-income earners. He noted that the introduction of a single-digit mortgage product at 9.75 percent offers a realistic pathway for many Nigerians seeking to transition from renting to owning homes.
“The announcement of a 9.75 percent mortgage facility is a welcome development for Nigeria’s housing sector. It signals that the financial system is beginning to respond to the urgent need for affordable housing finance,” Adebayo stated.
HDAN noted that access to long-term, low-interest mortgage financing remains one of the most significant barriers to housing delivery in Nigeria, where the housing deficit runs into millions of units.
While commending the broader effort behind MREIF, the group said such financial innovations have the potential to unlock large-scale housing development if properly implemented and sustained.
However, HDAN urged stakeholders to ensure that the eligibility framework for the mortgage facility is inclusive and flexible enough to accommodate Nigerians in the informal sector, who constitute a large proportion of the workforce.
“While this initiative is commendable, it is important that the eligibility framework is inclusive and flexible enough to accommodate Nigerians in the informal sector. Housing finance must not be limited only to those in formal employment,” Adebayo added.
The advocacy group also called for stronger collaboration among government institutions, mortgage banks, property developers, and financial institutions to expand the supply of affordable housing units that can meet the expected rise in demand.
HDAN further emphasized that improving access to affordable mortgages will stimulate construction activities, generate employment across the building value chain, and contribute significantly to economic growth.
According to the organization, Nigeria’s housing challenge requires bold financial innovations that reduce borrowing costs and expand access to long-term housing finance.
HDAN reaffirmed its commitment to advocating policies and financial frameworks that promote affordable housing delivery and broaden homeownership opportunities for Nigerians.
