FirstBank of Nigeria Limited, in partnership with the Ministry of Finance Incorporated and ARM Investment Managers, has launched a single-digit mortgage scheme aimed at expanding access to affordable housing and addressing Nigeria’s housing deficit, estimated at between 20 and 28 million units.
The initiative was unveiled in Abuja on Tuesday and is built around the provision of long-term, low-interest mortgage financing. It is expected to stimulate construction activities, support job creation, and promote broader economic inclusion.
Speaking at the launch, the Managing Director and Chief Executive Officer of FirstBank, Olusegun Alebiosu, said the programme would reshape Nigeria’s housing finance landscape by offering mortgages at single-digit interest rates despite the prevailing high-interest-rate environment.
Alebiosu said the scheme blends social impact with economic returns by making home ownership more accessible while energising the construction value chain. He explained that mortgages offered at rates significantly below market levels, with tenors of up to 20 years, would ease the financial pressure on households and unlock large-scale housing development across the country.
According to him, the construction of thousands of housing units would create jobs for artisans, contractors, and suppliers, while repayments from beneficiaries would be recycled to finance additional housing projects.
He added that the reinvestment of mortgage repayments would establish a self-sustaining funding model capable of supporting housing delivery and employment generation over the long term.
Also speaking, the National Coordinator of the MOFI Real Estate Investment Fund (MREIF), Sani Yakubu, said the scheme differs from previous public housing programmes by being market-driven, transparent, and designed for sustainability.
Yakubu disclosed that MREIF was recently listed on the Nigerian Exchange, with an initial N250bn tranche funded by a mix of public and private sector investors.
He said the fund is regulated by the Securities and Exchange Commission, independently rated, and structured as an A-grade, tradable investment. According to him, the mortgages run for up to 20 years and are refinanced by the Nigerian Mortgage Refinance Company, features he said help insulate the programme from policy inconsistencies and enhance long-term stability.
Yakubu noted that FirstBank’s extensive nationwide network and broad customer base position it to scale access to affordable mortgages across Nigeria. He added that the fund has already supported more than 1,100 mortgage applicants, with further transactions currently underway.
He explained that the scheme offers mortgage financing at about 9.75 per cent interest, requires a 10 per cent equity contribution from beneficiaries, and provides off-take guarantees for developers to ensure completed homes are matched with qualified buyers. He added that the initiative is supported by a N1tn programme registered with the SEC, starting with a N250bn tranche designed to attract sustained private sector participation.
In her remarks, the Managing Director of ARM Investment Managers Limited, Kai Orga, said the partnership with FirstBank would fast-track access to mortgage financing and streamline approval processes.
She disclosed that ARM has already facilitated home ownership through mortgage disbursements of over N75m to more than 110 clients, adding that approvals under the new arrangement could be completed within four to six weeks.
The initiative, known as the Ministry of Finance Incorporated Real Estate Investment Fund, is a public-private programme introduced under the administration of President Bola Tinubu to address Nigeria’s housing deficit. It is backed by the Federal Government through MOFI, powered by FirstBank, and managed by ARM Investment Managers.
