Sterling Bank has partnered with the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) to introduce a long-term mortgage financing programme aimed at expanding access to affordable housing in Nigeria.
The new initiative, unveiled at Sterling Bank’s headquarters in Lagos, is designed to address the country’s significant housing deficit by providing accessible home financing to a broader range of Nigerians.
According to the bank, the mortgage scheme allows qualified applicants to access loans of up to N100 million with a fixed annual interest rate of approximately 9.75 percent.
The facility also offers a repayment period of up to 20 years, making it one of the longer-tenured mortgage products currently available in Nigeria’s housing finance market.
Expanding access to homeownership
Under the structure of the programme, prospective homeowners are required to provide only 10 percent equity contribution, while the financing arrangement covers up to 90 percent of the property value.
This high loan-to-value ratio is intended to lower the financial barrier for many Nigerians who struggle to accumulate large upfront payments when purchasing homes.
The bank said the initiative forms part of broader efforts to strengthen financial inclusion and increase homeownership opportunities across the country.
Speaking on the partnership, Vice President of Consumer Banking at Sterling Bank, David Adebayo, described the programme as a major step toward making home financing more accessible.
He noted that combining competitive interest rates with longer repayment tenures helps reduce the financial pressure on borrowers.
According to him, the initiative is designed to provide patient capital that allows Nigerians to purchase homes sustainably.
Public-private collaboration to tackle housing deficit
Officials involved in the programme emphasised that collaboration between the private sector and government-backed institutions is critical to addressing Nigeria’s housing challenges.
Executive Director of ARM Investment Managers, the fund managers for MREIF, Mounir Bouba, said the partnership represents an important milestone in efforts to deepen Nigeria’s mortgage market.
He explained that the programme aligns with wider strategies aimed at making housing finance more affordable and accessible at scale.
Bouba added that strategic partnerships between financial institutions and housing funds could help mobilise private capital for the development of sustainable housing solutions.
Scaling the mortgage fund
Bouba further revealed that the initiative begins with an initial N10 billion commitment, with plans to expand the fund as demand grows.
The structure of the fund allows for future scaling to accommodate more borrowers and support wider access to housing finance nationwide.
Industry observers say such initiatives are necessary to strengthen Nigeria’s underdeveloped mortgage sector and bridge the housing supply gap.
Inclusive mortgage access
The mortgage programme is designed to accommodate a diverse group of applicants.
Eligible beneficiaries include salary earners with verifiable income, entrepreneurs with documented financial records and Nigerians living in the diaspora.
Both new and existing customers of Sterling Bank can apply for the mortgage facility.
Analysts say expanding eligibility criteria is critical to improving participation in the housing finance system, which currently serves only a small percentage of Nigeria’s population.
Role of MREIF in housing finance
The Ministry of Finance Incorporated Real Estate Investment Fund serves as a government-backed vehicle created to mobilise private investment into Nigeria’s housing sector.
By providing structured funding support and facilitating lower interest mortgage loans, the fund aims to remove structural barriers that have historically limited access to housing finance.
Housing experts say initiatives like this could help stimulate property development, increase homeownership and gradually reduce Nigeria’s housing deficit, which is estimated to run into millions of units.
