Sterling Bank, MREIF Expand Affordable Housing Finance
Sterling Bank has partnered with the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) to introduce a long-term mortgage scheme designed to expand access to affordable housing finance in Nigeria.
The initiative allows eligible Nigerians to access mortgage loans of up to ₦100 million, with repayment periods of up to 20 years, as part of broader efforts to tackle the country’s housing deficit.
Under the programme, the loans are offered at a fixed interest rate of about 9.75 per cent per annum, providing borrowers with predictable repayment terms over the life of the mortgage.
Lower Equity Requirement for Homebuyers
To make the scheme more accessible, the facility allows financing of up to 90 percent of the property value, meaning prospective homeowners are required to provide only 10 percent equity contribution.
The programme is open to a wide range of applicants, including:
Salaried workers with verifiable income
Business owners with documented financial records
Nigerians in the diaspora seeking to invest in property at home
Both new and existing Sterling Bank customers across the country are eligible to apply for the mortgage facility.
Strengthening Access to Housing Finance
According to Sterling Bank, the collaboration reflects efforts to make long-term capital available for housing development and home ownership.
The bank’s Vice President for Consumer Banking, David Adebayo, said the initiative aims to remove barriers that prevent many Nigerians from owning homes.
He noted that longer loan tenures and competitive pricing could help expand financial inclusion and improve access to housing finance.
Role of Public-Private Collaboration
Officials involved in the programme say the partnership demonstrates the importance of collaboration between the public and private sectors in addressing Nigeria’s housing challenges.
The fund is managed by ARM Investment Managers and forms part of wider efforts to mobilise private capital and deepen Nigeria’s mortgage market.
Industry stakeholders believe structured financing initiatives such as the MREIF programme could stimulate housing development while making mortgages more affordable for middle-income earners.
Addressing Nigeria’s Housing Deficit
Nigeria faces an estimated housing deficit of tens of millions of units, driven by population growth, rapid urbanisation and limited access to long-term mortgage financing.
Limited availability of affordable mortgages has historically forced many Nigerians to rely on personal savings or incremental construction to build homes.
Experts say initiatives that expand access to long-tenor mortgages could help accelerate homeownership and stimulate growth across the housing and construction sectors.
Outlook
With demand for housing continuing to rise across Nigeria’s major cities, stakeholders believe that innovative mortgage programmes like the Sterling Bank–MREIF initiative could play a crucial role in expanding housing finance and supporting the delivery of affordable homes nationwide.
