FirstBank of Nigeria Limited, in partnership with the Ministry of Finance Incorporated and ARM Investment Managers Limited, has launched a single-digit mortgage scheme aimed at expanding access to affordable housing and reducing Nigeria’s housing deficit, which is estimated at between 20 and 28 million units.
The initiative was unveiled in Abuja on Tuesday and is designed to provide long-term, low-interest mortgage financing to Nigerians. Stakeholders at the event said the programme is expected to boost construction activities, support job creation, and promote wider economic inclusion by making home ownership more achievable for more households.
Speaking at the launch, the Managing Director and Chief Executive Officer of FirstBank, Olusegun Alebiosu, said the scheme would reshape Nigeria’s housing finance landscape by offering mortgages at single-digit interest rates despite the current high-interest-rate environment.
Alebiosu said the initiative blends social impact with economic returns, noting that it would make home ownership more accessible while also energising the construction value chain. He explained that mortgages under the scheme are offered at rates significantly below market levels, with repayment tenors of up to 20 years.
According to him, these features would reduce financial pressure on households and help unlock large-scale housing development across the country. “By easing repayment terms, families can plan better and developers can build more confidently,” he said.
He added that the construction of thousands of housing units would generate jobs for artisans, contractors, and suppliers, while mortgage repayments from beneficiaries would be recycled to finance additional housing projects. He said this reinvestment process would help create a self-sustaining funding model capable of supporting housing delivery and employment generation over the long term.
Also speaking at the event, the National Coordinator of the MOFI Real Estate Investment Fund (MREIF), Sani Yakubu, said the scheme is different from earlier public housing programmes because it is market-driven, transparent, and designed to be sustainable.
Yakubu disclosed that MREIF was recently listed on the Nigerian Exchange, with an initial N250bn tranche funded through 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 Yakubu, mortgages under the scheme run for up to 20 years and are refinanced by the Nigerian Mortgage Refinance Company, a structure he said helps protect the programme from policy changes and improves long-term stability.
He noted that FirstBank’s wide national network and large customer base place it in a strong position to scale access to affordable mortgages across the country. He added that the fund has already supported more than 1,100 mortgage applicants, with additional transactions currently in progress.
Yakubu explained that the scheme offers mortgage financing at about 9.75 per cent interest, requires beneficiaries to provide a 10 per cent equity contribution, and includes off-take guarantees for developers to ensure completed homes are matched with qualified buyers. He also said the initiative is supported by a N1tn programme registered with the SEC, starting with a N250bn tranche aimed at attracting sustained private sector participation.
In her remarks, the Managing Director of ARM Investment Managers Limited, Kai Orga, said the partnership with FirstBank would speed up access to mortgage financing and make approval processes more efficient. 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.
