FirstBank, MREIF Offer 9.75% Mortgage Lifeline as Nigerians Pursue Homeownership
FirstBank-MREIF Mortgage Plan Opens Path to Homeownership
A new mortgage initiative launched by FirstBank of Nigeria in partnership with the Ministry of Finance Incorporated through the MOFI Real Estate Investment Fund (MREIF) is offering Nigerians access to home loans at a single-digit interest rate of 9.75%, providing what stakeholders describe as a lifeline for prospective homeowners facing high borrowing costs.
The mortgage programme is backed by a ₦1 trillion housing intervention fund aimed at expanding access to affordable housing finance and narrowing Nigeria’s persistent housing deficit.
Affordable Mortgage in a High-Interest Environment
For many Nigerians, homeownership has remained difficult due to high lending rates. Commercial bank mortgages often carry interest rates between 25% and 30%, making long-term housing finance unaffordable for most households.
The new mortgage facility, however, offers loans at 9.75% per annum, significantly below prevailing market rates. The scheme allows qualified applicants to borrow up to ₦100 million with repayment periods extending up to 20 years, lowering monthly repayment burdens.
Housing finance analysts say this structure could help many Nigerians transition from renting to owning homes by spreading the cost of property over a longer period.
Designed for Broad Participation
The mortgage programme is structured to accommodate a wide range of potential homeowners. Eligible applicants include:
Salary earners
Entrepreneurs and small business owners
Nigerians in the diaspora seeking property investments
Applicants are required to contribute a minimum equity payment of about 10% of the property value, while repayment obligations are capped so that monthly mortgage payments do not exceed 40% of income.
Industry experts note that the scheme’s inclusive framework is intended to widen access to formal mortgage financing, which remains relatively limited in Nigeria.
Tackling Nigeria’s Housing Finance Gap
Nigeria’s housing sector has long struggled with limited mortgage penetration and a substantial housing deficit estimated in the tens of millions of units. A lack of long-term financing and high interest rates has forced many households to rely on incremental building through personal savings rather than structured mortgages.
By combining government-backed funding with private-sector banking infrastructure, the FirstBank-MREIF partnership represents a hybrid model aimed at strengthening the country’s housing finance ecosystem.
Analysts say initiatives like this could stimulate investment in the real estate and construction sectors while supporting broader economic growth through job creation across the housing value chain.
Potential Economic Impact
Beyond individual homeowners, the mortgage programme could have wider implications for Nigeria’s economy. Increased access to housing finance may:
Stimulate new housing development projects
Create employment across the construction and building materials sectors
Strengthen the mortgage market and financial system
Reduce pressure on rental housing markets in major cities
As more Nigerians gain access to long-term mortgages, demand for residential properties could increase, encouraging developers to expand housing supply.
Industry observers say the success of the initiative will depend on sustained funding, efficient loan disbursement, and collaboration among developers, banks, and policymakers.
If effectively implemented, the 9.75% mortgage scheme could mark a turning point in Nigeria’s housing finance landscape shifting homeownership from a distant aspiration to a realistic possibility for many households.
