The Federal Government has introduced new measures aimed at making homeownership more attainable for Nigerians, with the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) announcing a reduction of its mortgage equity contribution requirement from 20 per cent to 10 per cent.
The move, which follows an earlier cut in interest rates from 12 per cent to 9.75 per cent, applies to MREIF’s long-term mortgage products with repayment periods of up to 20 years. The initiative is designed to ease access to housing for middle- and lower-income earners while addressing the country’s persistent housing deficit.
Chief Executive Officer of the Ministry of Finance Incorporated (MOFI), Dr. Armstrong Takang, described the development as a “transformative step” toward breaking one of the major barriers to homeownership.
“I am excited to share that the Equity Contribution for homeseekers under the MREIF has now been reduced to 10 per cent, from the initial 20 per cent, for all applicants,” Takang announced via his official LinkedIn handle. “This follows our recent reduction of the interest rate from 12 per cent to 9.75 per cent. Our goal is to turn the dream of owning a home into reality for as many Nigerians as possible.”
According to Takang, the revised terms form part of the Federal Government’s Renewed Hope agenda, which prioritises affordable housing as a cornerstone of social and economic development. “By reducing the down payment and maintaining our low interest rate, we are opening the door to a brighter, more secure future for families across the nation,” he said.
The scheme also offers applicants the option to use funds from their Retirement Savings Account (RSA) for their down payment, a provision aimed at enhancing flexibility and participation, especially among those in formal employment.
Takang assured prospective homeowners of MOFI’s continued dedication to delivering tangible results. “We are committed to expanding access to decent housing and aligning our efforts with the President’s vision for affordable homes for Nigerians,” he said.
The MREIF’s work has not gone unnoticed, as it recently received the Innovative FG Mortgage Intervention Award at the 2025 Africa International Housing Show (AIHS). Takang said the recognition would further drive the team’s commitment. “This award inspires us to do more, fully aware of the scale of the task and the potential impact on citizens’ lives,” he noted.
The revised mortgage terms are expected to stimulate wider participation in the housing market, boosting demand in both the affordable and mid-tier property segments while supporting the government’s goal of inclusive economic growth.
