Diaspora Nigerians Drive Uptake of Government-Backed Mortgage Fund
A government-supported mortgage initiative is recording strong interest from Nigerians abroad seeking long-term participation in the country’s property market. The Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF), managed with private sector support, is offering mortgage loans of up to ₦100 million at an interest rate of 12% over 20 years, with a required equity contribution of 20%.
The programme has gained traction among Nigerians in the United States, United Kingdom, and Canada, many of whom view the facility as a practical entry point into the local housing sector. According to Femi Johnson, former CEO of Homebase Mortgage Bank and past president of the Mortgage Banking Association of Nigeria (MBAN), the uptake has been “unprecedented,” with interest coming from individuals, professional associations, church groups, and diaspora investment clubs.
Industry observers note that this is the first time Nigerians abroad are being offered mortgage terms approaching those in their host countries, both in structure and processing timelines.
Competitive Adjustments by Banks
While the fund was initially structured around a 12% interest rate and 20% equity contribution, Stanbic IBTC has introduced more competitive terms, cutting rates to 9.75% and reducing equity requirements to 10%. The bank stipulates a minimum monthly income of ₦500,000 for salaried applicants and an annual turnover of ₦100 million for self-employed applicants, including those in the diaspora.
Other participating institutions include Homebase Mortgage Bank, Imperial Homes Mortgage Bank, and Infinity Trust Mortgage Bank. Homebase has focused its marketing on diaspora communities through events and digital campaigns, while Stanbic has added new features such as the option to use pension savings as part of equity contributions and the ability to apply jointly with a spouse.
Divergent Views on Affordability
Reactions among diaspora Nigerians remain mixed. Supporters argue that in an economy where inflation is above 30%, a mortgage rate of 12% or even 9.75% is comparatively favourable. Critics, however, highlight the high repayment burden over the tenor of the loan. For instance, a ₦50 million facility at 12% could accrue more than ₦135 million in interest over a 30-year period, raising questions about affordability.
Online discussions reflect these divisions. While some applicants describe the process as straightforward and encourage uptake, others caution that the repayment costs may prove excessive compared with international mortgage benchmarks.
Outlook for the Housing Sector
Despite these concerns, experts maintain that MREIF could represent a turning point in diaspora participation in Nigeria’s real estate sector. By offering structured, long-term financing on terms closer to international practice, the programme addresses one of the core barriers to investment: access to affordable and transparent housing finance.
The success of the initiative, however, will depend on sustained improvements in lending conditions, effective risk management, and government oversight to ensure long-term viability. For policymakers, the programme offers both an opportunity to deepen diaspora investment flows and a test case for expanding mortgage accessibility within Nigeria’s broader housing market.
