FG Introduces N1 Trillion Mortgage Scheme with 12% Interest to Tackle Housing Deficit
Introduction
The Federal Government of Nigeria, through the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF), has launched a groundbreaking 20-year mortgage financing scheme with a 12% interest rate. ✨ This initiative aims to increase homeownership accessibility while addressing Nigeria’s significant housing deficit.
The scheme, which kicks off with an initial capital of N250 billion, is part of a larger N1 trillion fund designed to provide low-cost mortgage options. ARM Investment Managers, the fund’s administrators, announced these details at a recent media briefing in Lagos.
Key Features of the Mortgage Scheme
1️⃣ Phased Implementation
✅ The mortgage fund will be introduced in phases.
✅ The first phase, worth N150 billion, has already been registered and fully subscribed by the Ministry of Finance and Coordination.
✅ The second phase aims to raise an additional N100 billion, targeting commercial investors and leveraging Nigeria’s pension fund industry, which currently holds over N20 trillion. ️
2️⃣ Long-Term, Affordable Home Loans
✅ The fund will offer low-cost mortgages with 12% interest rates, repayable over 20 years.
✅ Eligible financial institutions will pre-qualify applicants and extend mortgage facilities to them, making homeownership more accessible.
3️⃣ Housing Development Support
✅ To help developers secure financing, the fund will offer off-take guarantees to enhance their creditworthiness.
✅ This allows developers to access construction loans and complete housing projects without the financial strain of selling off-plan at fixed prices. ️️
How the Mortgage Process Works
A seamless digital application platform has been developed for easy mortgage access. Prospective homeowners can:
1️⃣ Fill out an application online via the MREIF portal. ️
2️⃣ Get verified and pre-approved for a mortgage. ✅
3️⃣ Select a home from a list of vetted properties.
4️⃣ Receive final approval and disbursement.
The platform currently hosts over 2,000 housing units nationwide and allows users to check their eligibility based on income, age, and equity contribution.
Bonus: Individuals can also apply to use 25% of their Retirement Savings Account (RSA) balance as an equity contribution toward their mortgage!
Who Can Benefit?
The fund will focus on urban areas with the highest housing deficits, including:
Lagos
Abuja
Kano
Rivers
Enugu
Abia
Loan amounts range from a minimum of N45 million to N50 million up to N200 million, making homeownership more accessible for a broader segment of the population.
Private Sector-Led for Transparency and Efficiency
To ensure transparency and efficiency, the government-backed MREIF will be private sector-led. ⚖️
ARM Investment Managers will serve as fund managers.
An investment committee will oversee operations, including representatives from:
✅ Ministry of Finance Incorporation
✅ Trustees
✅ Custodians
✅ Independent experts
Unlike the National Housing Fund (NHF), which has faced bureaucratic delays, MREIF is scalable, private-sector-driven, and more transparent.
Conclusion
The launch of this N1 trillion mortgage scheme marks a major step toward solving Nigeria’s housing crisis. By leveraging pension funds, introducing flexible mortgage options, and utilizing a private-sector-driven approach, the government is creating a more sustainable and transparent homeownership system.
With the digital application platform simplifying the process, prospective homeowners now have a clearer and more efficient path to securing affordable housing.
Introduction
The Federal Government of Nigeria, through the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF), has launched a groundbreaking 20-year mortgage financing scheme with a 12% interest rate. ✨ This initiative aims to increase homeownership accessibility while addressing Nigeria’s significant housing deficit.
The scheme, which kicks off with an initial capital of N250 billion, is part of a larger N1 trillion fund designed to provide low-cost mortgage options. ARM Investment Managers, the fund’s administrators, announced these details at a recent media briefing in Lagos.
Key Features of the Mortgage Scheme
1️⃣ Phased Implementation
✅ The mortgage fund will be introduced in phases.
✅ The first phase, worth N150 billion, has already been registered and fully subscribed by the Ministry of Finance and Coordination.
✅ The second phase aims to raise an additional N100 billion, targeting commercial investors and leveraging Nigeria’s pension fund industry, which currently holds over N20 trillion. ️
2️⃣ Long-Term, Affordable Home Loans
✅ The fund will offer low-cost mortgages with 12% interest rates, repayable over 20 years.
✅ Eligible financial institutions will pre-qualify applicants and extend mortgage facilities to them, making homeownership more accessible.
3️⃣ Housing Development Support
✅ To help developers secure financing, the fund will offer off-take guarantees to enhance their creditworthiness.
✅ This allows developers to access construction loans and complete housing projects without the financial strain of selling off-plan at fixed prices. ️️
How the Mortgage Process Works
A seamless digital application platform has been developed for easy mortgage access. Prospective homeowners can:
1️⃣ Fill out an application online via the MREIF portal. ️
2️⃣ Get verified and pre-approved for a mortgage. ✅
3️⃣ Select a home from a list of vetted properties.
4️⃣ Receive final approval and disbursement.
The platform currently hosts over 2,000 housing units nationwide and allows users to check their eligibility based on income, age, and equity contribution.
Bonus: Individuals can also apply to use 25% of their Retirement Savings Account (RSA) balance as an equity contribution toward their mortgage!
Who Can Benefit?
The fund will focus on urban areas with the highest housing deficits, including:
Lagos
Abuja
Kano
Rivers
Enugu
Abia
Loan amounts range from a minimum of N45 million to N50 million up to N200 million, making homeownership more accessible for a broader segment of the population.
Private Sector-Led for Transparency and Efficiency
To ensure transparency and efficiency, the government-backed MREIF will be private sector-led. ⚖️
ARM Investment Managers will serve as fund managers.
An investment committee will oversee operations, including representatives from:
✅ Ministry of Finance Incorporation
✅ Trustees
✅ Custodians
✅ Independent experts
Unlike the National Housing Fund (NHF), which has faced bureaucratic delays, MREIF is scalable, private-sector-driven, and more transparent.
Conclusion
The launch of this N1 trillion mortgage scheme marks a major step toward solving Nigeria’s housing crisis. By leveraging pension funds, introducing flexible mortgage options, and utilizing a private-sector-driven approach, the government is creating a more sustainable and transparent homeownership system.
With the digital application platform simplifying the process, prospective homeowners now have a clearer and more efficient path to securing affordable housing.