Single-Digit Mortgages: FirstBank Leads Bold Push to Fix Nigeria’s Housing Crisis
Nigeria’s housing deficit may finally be getting a serious response as FirstBank of Nigeria Limited, in partnership with the Ministry of Finance Incorporated (MOFI) and ARM Investment Managers, has launched a single-digit mortgage scheme designed to make home ownership more affordable while stimulating jobs and economic growth.
What the Initiative Is About
The new mortgage scheme offers Nigerians access to home loans at single-digit interest rates—a rare opportunity in an economy where borrowing costs are typically very high. The programme is positioned not just as a housing solution, but as a long-term wealth-creation and economic empowerment tool.
Speaking at the launch in Abuja, FirstBank’s Managing Director and CEO, Olusegun Alebiosu, described the scheme as both an economic and social revolution, capable of transforming Nigeria’s housing and construction sectors.
Why Single-Digit Mortgages Matter
According to Alebiosu, the difference between borrowing at about 20% interest versus a single-digit rate over 20 years is massive. Lower interest means:
• Smaller monthly repayments
• Better affordability for families
• Increased access to home ownership
• Greater long-term financial value for beneficiaries
He stressed that this approach allows Nigerians not just to buy homes, but to build generational wealth, as homes can be passed down to future generations.
♂️ Massive Job Creation Potential
Beyond housing, the initiative is expected to revive the construction sector:
• Building just 10,000 houses nationwide would activate carpenters, bricklayers, painters, plumbers, electricians and artisans.
• The construction value chain would receive fresh liquidity.
• As mortgages are repaid monthly, funds are recycled to finance more housing projects, creating a sustainable economic loop.
In Alebiosu’s words, Nigeria could effectively become a “construction site”, driving employment and economic activity for years.
How the Fund Is Structured
The scheme is powered by the MOFI Real Estate Investment Fund (MREIF), which was recently listed on the Nigerian Exchange (NGX).
Key features include:
• An initial ₦250 billion tranche, backed by both public and private investors
• A ₦1 trillion SEC-registered programme
• 20-year mortgage tenure
• Refinancing support from the Nigerian Mortgage Refinance Company (NMRC)
• Oversight by the Securities and Exchange Commission (SEC)
• Independent ratings and an A-grade, tradable investment structure
This design, according to MOFI, protects the programme from policy reversals and ensures transparency.
Progress So Far
MOFI disclosed that:
• Over 1,100 mortgage applicants have already been supported
• More transactions are currently in the pipeline
• Interest rates are around 9.75%, with just 10% equity contribution from buyers
The fund also provides off-take guarantees to developers, ensuring completed homes are matched with qualified buyers—reducing risk across the housing ecosystem.
Why FirstBank and ARM Matter
MOFI cited FirstBank’s nationwide reach, size and reputation as critical to scaling the programme across Nigeria.
ARM Investment Managers, on its part, said the partnership will:
• Expand mortgage access
• Simplify processes
• Reduce approval timelines to 4–6 weeks
Big Picture Takeaway
With Nigeria’s housing deficit estimated at 20–28 million units, this initiative represents one of the most structured and market-driven attempts to tackle the crisis. If successfully scaled, it could:
• Improve home ownership
• Create millions of jobs
• Deepen financial inclusion
• Strengthen long-term economic growth
In simple terms: this is not just about houses—it’s about wealth, jobs, and economic stability.
Nigeria’s housing deficit may finally be getting a serious response as FirstBank of Nigeria Limited, in partnership with the Ministry of Finance Incorporated (MOFI) and ARM Investment Managers, has launched a single-digit mortgage scheme designed to make home ownership more affordable while stimulating jobs and economic growth.
What the Initiative Is About
The new mortgage scheme offers Nigerians access to home loans at single-digit interest rates—a rare opportunity in an economy where borrowing costs are typically very high. The programme is positioned not just as a housing solution, but as a long-term wealth-creation and economic empowerment tool.
Speaking at the launch in Abuja, FirstBank’s Managing Director and CEO, Olusegun Alebiosu, described the scheme as both an economic and social revolution, capable of transforming Nigeria’s housing and construction sectors.
Why Single-Digit Mortgages Matter
According to Alebiosu, the difference between borrowing at about 20% interest versus a single-digit rate over 20 years is massive. Lower interest means:
• Smaller monthly repayments
• Better affordability for families
• Increased access to home ownership
• Greater long-term financial value for beneficiaries
He stressed that this approach allows Nigerians not just to buy homes, but to build generational wealth, as homes can be passed down to future generations.
♂️ Massive Job Creation Potential
Beyond housing, the initiative is expected to revive the construction sector:
• Building just 10,000 houses nationwide would activate carpenters, bricklayers, painters, plumbers, electricians and artisans.
• The construction value chain would receive fresh liquidity.
• As mortgages are repaid monthly, funds are recycled to finance more housing projects, creating a sustainable economic loop.
In Alebiosu’s words, Nigeria could effectively become a “construction site”, driving employment and economic activity for years.
How the Fund Is Structured
The scheme is powered by the MOFI Real Estate Investment Fund (MREIF), which was recently listed on the Nigerian Exchange (NGX).
Key features include:
• An initial ₦250 billion tranche, backed by both public and private investors
• A ₦1 trillion SEC-registered programme
• 20-year mortgage tenure
• Refinancing support from the Nigerian Mortgage Refinance Company (NMRC)
• Oversight by the Securities and Exchange Commission (SEC)
• Independent ratings and an A-grade, tradable investment structure
This design, according to MOFI, protects the programme from policy reversals and ensures transparency.
Progress So Far
MOFI disclosed that:
• Over 1,100 mortgage applicants have already been supported
• More transactions are currently in the pipeline
• Interest rates are around 9.75%, with just 10% equity contribution from buyers
The fund also provides off-take guarantees to developers, ensuring completed homes are matched with qualified buyers—reducing risk across the housing ecosystem.
Why FirstBank and ARM Matter
MOFI cited FirstBank’s nationwide reach, size and reputation as critical to scaling the programme across Nigeria.
ARM Investment Managers, on its part, said the partnership will:
• Expand mortgage access
• Simplify processes
• Reduce approval timelines to 4–6 weeks
Big Picture Takeaway
With Nigeria’s housing deficit estimated at 20–28 million units, this initiative represents one of the most structured and market-driven attempts to tackle the crisis. If successfully scaled, it could:
• Improve home ownership
• Create millions of jobs
• Deepen financial inclusion
• Strengthen long-term economic growth
In simple terms: this is not just about houses—it’s about wealth, jobs, and economic stability.