FirstBank of Nigeria Limited has partnered with the Ministry of Finance Incorporated and ARM Investment Managers to introduce a single-digit mortgage financing scheme aimed at widening access to affordable home ownership and reducing Nigeria’s housing shortfall, currently estimated at between 20 million and 28 million units.
The mortgage initiative was unveiled on Tuesday in Abuja and is designed to provide long-term housing finance at significantly reduced interest rates, even amid Nigeria’s prevailing high-interest-rate environment. The scheme is expected to drive large-scale housing development, stimulate construction activity and create employment across the housing value chain.
Speaking at the launch, FirstBank’s Managing Director and Chief Executive Officer, Olusegun Alebiosu, said the programme represents a major shift in Nigeria’s housing finance framework, offering mortgages at single-digit rates with repayment tenors of up to 20 years. He noted that the initiative combines commercial viability with social impact by easing the burden of home ownership for households while supporting economic growth.
Brandspur Banking News Desk reports that the scheme is structured to recycle mortgage repayments into new housing projects, creating a sustainable funding loop capable of financing thousands of homes over time. According to Alebiosu, this approach will generate steady employment for artisans, contractors and suppliers, while expanding access to decent housing nationwide.
Also addressing the gathering, the National Coordinator of the MOFI Real Estate Investment Fund, Sani Yakubu, said the programme differs from earlier public housing interventions by being market-driven, transparent and structured for long-term sustainability. He disclosed that the fund has been listed on the Nigerian Exchange, beginning with an initial N250bn tranche backed by a mix of public and private sector investors.
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Yakubu explained that the fund is regulated by the Securities and Exchange Commission, independently rated and designed as a tradable, investment-grade instrument. He added that mortgage facilities under the scheme run for up to 20 years and are refinanced by the Nigerian Mortgage Refinance Company, helping to shield the programme from policy inconsistencies.
According to him, the scheme currently offers mortgage financing at approximately 9.75 per cent interest, requires a minimum equity contribution of 10 per cent from beneficiaries and provides off-take guarantees to developers to ensure completed homes are matched with qualified buyers. He added that the broader programme is supported by a N1tn funding framework registered with the SEC, starting with the N250bn tranche.
In her remarks, the Managing Director of ARM Investment Managers Limited, Kai Orga, said the collaboration with FirstBank would significantly shorten mortgage approval timelines and simplify access to housing finance. She disclosed that ARM has already facilitated mortgage disbursements exceeding N75m to more than 110 clients, with approvals under the new scheme expected to be completed within four to six weeks.
The initiative, officially known as the Ministry of Finance Incorporated Real Estate Investment Fund, is a public-private housing programme introduced under the administration of President Bola Tinubu. It is backed by the Federal Government through MOFI, powered by FirstBank and managed by ARM Investment Managers to address Nigeria’s long-standing housing deficit.
