Sterling Bank Partners Government Housing Fund to Offer ₦100m Mortgages at 9.75% Interest
Major Partnership to Tackle Nigeria’s Housing Shortage
Sterling Bank has entered into a strategic partnership with the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) to help reduce Nigeria’s housing deficit and expand access to affordable home financing.
The agreement was formalised through a Memorandum of Understanding (MoU) aimed at providing easier mortgage access for Nigerians and encouraging more people to own homes.
Who Signed the Agreement
The MoU was signed at Sterling Bank’s headquarters in Lagos by:
• David Adebayo, Vice President of Consumer Banking at Sterling Bank
• Mounir Bouba, Executive Director at ARM Investment Managers, the fund manager of MREIF
The partnership highlights collaboration between private financial institutions and government-backed investment funds.
Affordable Mortgage Loans for Nigerians
Under the programme, eligible Nigerians will be able to access long-term mortgage loans with the following features:
• Interest rate: Approximately 9.75% per year (fixed)
• Loan tenure: Up to 20 years
• Maximum loan amount: ₦100 million
• Loan coverage: Up to 90% of the property value
• Equity contribution: As low as 10%
This means someone buying a house worth ₦50 million, for example, may only need ₦5 million upfront, while the remaining ₦45 million could be financed through the mortgage.
Who Can Apply for the Mortgage
The programme is designed to be widely accessible. Eligible applicants include:
• Salary earners with verifiable income
• Business owners with documented financial records
• Nigerians living in the diaspora
• Both new and existing customers of Sterling Bank
The goal is to broaden access to home ownership across different income groups.
Why the Initiative Matters
According to David Adebayo, the initiative is designed to remove major barriers preventing many Nigerians from owning homes.
He explained that the partnership provides:
• Longer loan repayment periods
• Competitive mortgage interest rates
• Higher loan-to-value ratios
These features are expected to make housing more affordable and accessible.
Role of the Government Housing Fund
The Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) is a government-backed housing finance vehicle created by the Ministry of Finance Incorporated, the investment arm of Nigeria’s Federal Ministry of Finance.
The fund was established to:
• Expand access to low-interest mortgages
• Support large-scale housing development
• Mobilise private investment into the housing sector
Initial ₦10 Billion Funding Commitment
According to Mounir Bouba, MREIF has committed an initial ₦10 billion to the programme.
However, this amount could increase as demand grows. Additional funding may be provided to scale the initiative and support more Nigerians seeking mortgages.
Public-Private Collaboration to Solve Housing Crisis
Experts say the partnership demonstrates the importance of public-private collaboration in tackling Nigeria’s massive housing shortage.
Through partnerships like this:
• Private banks provide financial infrastructure and lending expertise
• Government-backed funds provide capital support and policy backing
Together, they can create structured solutions to Nigeria’s housing challenges.
What This Means for Nigerians
If successfully implemented, the initiative could:
• Make mortgages more affordable
• Increase homeownership across the country
• Expand Nigeria’s mortgage market
• Encourage more private investment in housing development
Ultimately, the programme aims to help bridge Nigeria’s housing deficit while strengthening the country’s real estate sector.
Major Partnership to Tackle Nigeria’s Housing ShortageSterling Bank has entered into a strategic partnership with the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) to help reduce Nigeria’s housing deficit and expand access to affordable home financing.
The agreement was formalised through a Memorandum of Understanding (MoU) aimed at providing easier mortgage access for Nigerians and encouraging more people to own homes.
Who Signed the AgreementThe MoU was signed at Sterling Bank’s headquarters in Lagos by:
• David Adebayo, Vice President of Consumer Banking at Sterling Bank
• Mounir Bouba, Executive Director at ARM Investment Managers, the fund manager of MREIF
The partnership highlights collaboration between private financial institutions and government-backed investment funds.
Affordable Mortgage Loans for NigeriansUnder the programme, eligible Nigerians will be able to access long-term mortgage loans with the following features:
• Interest rate: Approximately 9.75% per year (fixed)
• Loan tenure: Up to 20 years
• Maximum loan amount: ₦100 million
• Loan coverage: Up to 90% of the property value
• Equity contribution: As low as 10%
This means someone buying a house worth ₦50 million, for example, may only need ₦5 million upfront, while the remaining ₦45 million could be financed through the mortgage.
Who Can Apply for the MortgageThe programme is designed to be widely accessible. Eligible applicants include:
• Salary earners with verifiable income
• Business owners with documented financial records
• Nigerians living in the diaspora
• Both new and existing customers of Sterling Bank
The goal is to broaden access to home ownership across different income groups.
Why the Initiative MattersAccording to David Adebayo, the initiative is designed to remove major barriers preventing many Nigerians from owning homes.
He explained that the partnership provides:
• Longer loan repayment periods
• Competitive mortgage interest rates
• Higher loan-to-value ratios
These features are expected to make housing more affordable and accessible.
Role of the Government Housing FundThe Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) is a government-backed housing finance vehicle created by the Ministry of Finance Incorporated, the investment arm of Nigeria’s Federal Ministry of Finance.
The fund was established to:
• Expand access to low-interest mortgages
• Support large-scale housing development
• Mobilise private investment into the housing sector
Initial ₦10 Billion Funding CommitmentAccording to Mounir Bouba, MREIF has committed an initial ₦10 billion to the programme.
However, this amount could increase as demand grows. Additional funding may be provided to scale the initiative and support more Nigerians seeking mortgages.
Public-Private Collaboration to Solve Housing CrisisExperts say the partnership demonstrates the importance of public-private collaboration in tackling Nigeria’s massive housing shortage.
Through partnerships like this:
• Private banks provide financial infrastructure and lending expertise
• Government-backed funds provide capital support and policy backing
Together, they can create structured solutions to Nigeria’s housing challenges.
What This Means for Nigerians
If successfully implemented, the initiative could:
• Make mortgages more affordable
• Increase homeownership across the country
• Expand Nigeria’s mortgage market
• Encourage more private investment in housing development
Ultimately, the programme aims to help bridge Nigeria’s housing deficit while strengthening the country’s real estate sector.