First Bank of Nigeria, in partnership with the Federal Ministry of Finance through the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF), has launched an affordable mortgage financing initiative aimed at expanding access to home ownership for Nigerians.

The programme offers eligible Nigerians access to government-backed mortgage loans at a single-digit interest rate of 9.75 per cent per annum, with financing of up to ₦100 million for residential property acquisition.

The initiative seeks to address one of the major barriers to home ownership in Nigeria—limited access to affordable long-term housing finance. Rising property prices, high lending rates and stringent mortgage requirements have continued to place home ownership beyond the reach of many Nigerians.

Under the scheme, qualified applicants can access mortgage financing on favourable terms, creating a more affordable pathway from renting to owning homes.

According to First Bank, the partnership supports the Federal Government’s broader efforts to bridge Nigeria’s housing deficit, deepen mortgage penetration and promote financial inclusion through innovative housing finance solutions.

The bank noted that the programme combines affordability, accessibility and long-term sustainability, enabling more Nigerians to purchase homes without the burden of expensive commercial lending rates.

First Bank reaffirmed its commitment to supporting national development by providing financial products that improve the quality of life of citizens and stimulate economic growth.

Industry stakeholders have described the initiative as a significant step towards strengthening Nigeria’s housing finance ecosystem and increasing access to affordable mortgages for low- and middle-income earners.

The mortgage financing programme is expected to help more Nigerians transition into home ownership while supporting growth across the housing, construction and real estate sectors.

Interested applicants can obtain more information and begin the application process through First Bank’s mortgage platform.

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President Bola Tinubu has commended the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) for delivering N128 billion in affordable mortgages to 1,859 families across 25 states of the federation.

The President described the milestone as evidence that the right policy framework, strong institutions and strategic partnerships can significantly expand access to home ownership for millions of Nigerians.

In a statement issued on Tuesday by his Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu said the beneficiaries, spread across the six geopolitical zones, accessed long-term mortgage facilities with repayment periods of up to 20 years at a fixed interest rate of 9.75 per cent per annum and a minimum equity contribution of 10 per cent.

Tinubu Says Affordable Housing Finance Is Key to Wealth Creation

According to the President, access to affordable mortgage financing has remained a major barrier to home ownership for many Nigerians over the past several decades.

“For years, many Nigerians could afford monthly rent but could not access the type of financing required to purchase a home,” Tinubu stated.

“That reality kept countless families out of home ownership and limited their ability to build lasting assets.

“The progress recorded by MREIF shows that with the right policies, strong institutions and effective partnerships, we can expand access to home ownership and create opportunities for more Nigerians to build wealth through asset ownership.”

MREIF Unlocks N221bn in Property Value

Beyond the N128 billion in mortgages already disbursed, the fund has reportedly unlocked N221 billion in total property value and supported the delivery of 475 housing units through off-take guarantee arrangements.

The Presidency noted that the average age of mortgage beneficiaries is 42 years, highlighting strong demand for affordable housing finance among working-age Nigerians who have historically struggled to access long-term mortgage facilities.

Understanding the MREIF Housing Finance Initiative

The Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) is a N1 trillion housing finance platform established to improve access to affordable mortgages and stimulate housing development across Nigeria.

Its pilot phase consists of N250 billion in concessionary and commercial funding.

The fund is sponsored by the Ministry of Finance Incorporated (MOFI) and managed by ARM Investment Managers.

Its Series 2 commercial issuance has received strong investment-grade ratings, including AAA from Agusto & Co. and AA from GCR Ratings, reflecting investor confidence in the initiative.

Part of Renewed Hope Housing Agenda

Tinubu explained that MREIF operates alongside other major housing interventions under his administration, including the Renewed Hope Cities and Estates Programme and Family Homes Funds Limited initiatives.

According to him, the programmes serve as complementary pillars of the administration’s broader strategy to reduce Nigeria’s housing deficit, expand affordable housing opportunities and increase home ownership nationwide.

The President reiterated his administration’s commitment to strengthening housing finance mechanisms and creating sustainable pathways for Nigerians to acquire homes through accessible mortgage schemes.

Industry stakeholders have continued to identify affordable mortgage financing as one of the most critical tools required to bridge Nigeria’s housing deficit and stimulate growth in the real estate sector.

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Many years after independence, Nigerian civil servants continue to grapple with rising rents, stagnant wages and the growing difficulty of home ownership. For millions of workers, owning a house remains a distant dream as housing costs continue to rise faster than incomes.

Nigeria’s housing challenge has remained one of the country’s most persistent development issues. Despite several interventions and policy promises over the years, the gap between housing demand and available supply continues to widen.

Rapid urbanisation, population growth, inflation, and high construction costs have combined to worsen the crisis, leaving many Nigerians trapped in expensive rental markets.

Housing Deficit Continues to Grow

While estimates vary, stakeholders generally agree that Nigeria’s housing deficit exceeds 15 million units.

This shortfall has forced millions of families into overcrowded apartments, substandard housing and informal settlements.

Unlike many developed countries where mortgage systems support large-scale home ownership, Nigeria’s housing finance sector remains weak due to high interest rates, low incomes and inadequate long-term financing structures.

For years, the Federal Mortgage Bank of Nigeria (FMBN) has remained one of the few institutions providing affordable long-term housing loans at single-digit interest rates.

However, experts say inadequate capitalisation has limited the institution’s reach.

Rising Rent Pressure on Workers

Across major cities such as Abuja, Lagos, Port Harcourt and Kano, rent prices have surged significantly.

Inflation, foreign exchange instability, high energy costs and increased prices of building materials have pushed up development costs, with landlords transferring those expenses directly to tenants.

For civil servants whose salaries often remain fixed for long periods, the impact has been severe.

Many workers now spend substantial portions of their income on rent and transportation after relocating to distant suburbs in search of cheaper accommodation.

In many cases, salary earners devote more than half of their monthly income to housing-related expenses.

FG Introduces N10bn Mortgage Intervention

The Federal Government recently announced a N10 billion housing facility through a partnership involving FMBN and the Federal Government Staff Housing Loans Board (FGSHLB).

The initiative aims to improve housing affordability and expand access to mortgage opportunities for federal workers.

The collaboration gained momentum following strategic engagements between leadership of both organisations focused on developing practical housing solutions tailored specifically to civil servants.

Under the arrangement, FMBN will provide funding support to FGSHLB for onward lending to workers.

The agreement is expected to strengthen access to homeownership financing, home renovation support, rent assistance and incremental housing development.

FMBN Expands Affordable Housing Products

Over the years, FMBN has expanded beyond traditional mortgage offerings.

The bank now provides products including:

• NHF Mortgage Loans
• Home Renovation Loans
• Rent-to-Own schemes
• Individual Construction Loans
• Cooperative Housing Development Loans
• Home Improvement Loans
• Rent Assistance programmes
• Diaspora Mortgage products

Among workers, the Home Renovation Loan has become particularly attractive because it offers affordable financing for repairs and completion of existing projects.

What the Initiative Means for Civil Servants

Analysts believe the significance of the N10 billion housing facility extends beyond its financial value.

The intervention arrives at a period when rising living costs and expensive rental obligations are placing enormous pressure on workers.

For many civil servants who dedicate decades to public service without realistic prospects of owning a home, the initiative offers renewed hope.

Importantly, FMBN Managing Director Shehu Usman Osidi disclosed that the bank had previously disbursed over N2.6 billion in Home Renovation Loans to more than 3,000 federal civil servants through FGSHLB.

This existing implementation record is seen as a sign that the partnership has practical foundations beyond policy announcements.

Industry observers say affordable housing can no longer be treated solely as a social intervention. It is increasingly becoming an economic necessity tied directly to worker welfare, productivity and long-term financial security.

The post How FG’s N10bn Housing Scheme Could Ease Nigeria’s Housing Burden on Civil Servants appeared first on Housing TV Africa.

A government-supported mortgage programme is drawing strong participation from Nigerians abroad eager to invest in real estate back home. The Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF), though managed with private sector backing, is offering long-term loans that many in the diaspora see as their most practical entry into Nigeria’s property market.

The facility provides loans of up to ₦100 million at a 12 percent interest rate for a period of 20 years, with an equity contribution of 20 percent. It is available to both salaried and self-employed Nigerians, whether resident in the country or overseas. The aim is to bridge the gap between demand and supply in the housing sector, which continues to face severe financing challenges.

Stanbic IBTC Bank has positioned itself as a leading provider of the scheme, recently improving on the fund’s terms by offering a reduced interest rate of 9.75 percent and cutting the equity requirement to 10 percent. The bank requires a minimum monthly income of ₦500,000 for salaried applicants and an annual turnover of ₦100 million for self-employed applicants, including those in the diaspora. Other institutions offering the product include Homebase Mortgage Bank, Imperial Homes Mortgage Bank, and Infinity Trust Mortgage Bank.

Demand has been especially strong from Nigerians in the United States, United Kingdom, and Canada. Femi Johnson, former CEO of Homebase Mortgage Bank and past president of the Mortgage Banking Association of Nigeria (MBAN), described the uptake as unprecedented. He explained that for the first time, Nigerians abroad can access mortgage loans at rates and processing speeds comparable to those in their host countries. Johnson noted that interest has come not only from individuals but also from church groups, professional associations, and investment clubs.

Homebase has concentrated its marketing campaigns on these three countries through physical events, online sessions, and targeted advertising across social media platforms. Stanbic has also launched an aggressive marketing push, highlighting new features such as the option to use a portion of retirement savings as part of the equity contribution and joint applications with a spouse.

The fund has generated mixed reactions among diaspora Nigerians. Some see it as an attractive opportunity in a country where inflation is above 30 percent, arguing that the interest rate is relatively low. Others consider the loan still too expensive by international standards, with concerns over the total repayment burden over the tenor of the loan.

One Nigerian in the UK, Deji Okunbo, shared on X that accessing the loan was straightforward and encouraged others to take advantage. Yet other users questioned its affordability, pointing out that a ₦50 million loan at 12 percent could result in over ₦135 million in interest over a 30-year period. Defenders of the programme countered that the rates must be judged in the context of Nigeria’s inflation, noting that a 12 percent mortgage in such an environment is comparatively cheap.

Despite the debate, industry experts believe MREIF could mark a breakthrough for diaspora participation in Nigeria’s property market. By offering structured financing at terms closer to international norms, the programme is being seen as an important step toward unlocking long-term investment in the country’s housing sector.

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