Homeownership remains a dream for many low-income Nigerians especially Federal civil servants. Despite the rising demand for affordable housing, the mortgage system continues to shut them out. Complex processes, high interest rates, and low wages make access nearly impossible for the average worker.
In Nigeria, most mortgage banks offer short-term loans. This limits their ability to provide real mortgage solutions, which require long repayment periods. For a low-income earner, paying a large deposit and meeting strict loan conditions is simply out of reach.
Property documentation is another hurdle. Many people do not have legal titles to their land. Without valid documents, their homes cannot serve as collateral. This leaves thousands unable to qualify for loans, no matter their need.
In response to this crisis, the Ministry of Finance Incorporated (MOFI) introduced the MOFI Real Estate Investment Fund (MREIF). The funding supports developers and provides better mortgage terms. It offers longer tenors up to 25 years and lower interest rates.
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Through MREIF, civil servants can now access mortgages with single-digit interest rates and only 10% down payment. The plan is backed by Family Homes Funds, ARM Investment Managers, and the African Development Bank. Over time, the fund is expected to grow to ₦1 trillion, expanding support to more Nigerians.
While MOFI’s efforts are promising, more is needed. Mortgage schemes must also include informal workers and small earners. Land titles must be easier to obtain, and approval processes must be faster. Linking loan repayment to salary accounts could also improve trust between lenders and borrowers.
If implemented well, MOFI and MREIF could open the doors of homeownership to those left behind for decades. But for now, many low-income Nigerians still wait for a mortgage system that works for them not just for the rich.
