The FirstBank of Nigeria Limited, in collaboration with the Ministry of Finance Incorporated (MOFI) and ARM Investment Managers, has launched a single-digit mortgage scheme aimed at reducing Nigeria’s housing deficit while driving economic growth and job creation.
https://www.digital.zenithbank.com/ZEQ/ZEQ-jan-2026/index.html#p=1Unveiled in Abuja, the initiative is designed to expand access to affordable home ownership by offering long-term mortgages at significantly lower interest rates than those currently prevailing in the market.
Speaking at the launch, Olusegun Alebiosu, FirstBank’s Managing Director and Chief Executive Officer, described the scheme as both an economic and social intervention capable of transforming Nigeria’s housing and construction sectors.
According to him, the programme addresses one of the country’s most pressing challenges by enabling more Nigerians to own homes while stimulating activity across the construction value chain.
“The difference between borrowing at 20 per cent and at a single-digit rate over a 20-year period is enormous,” Alebiosu said. “This programme gives Nigerians greater financial leverage and long-term value, even in a high-interest-rate environment.”
He explained that the scheme would also create thousands of jobs, noting that large-scale housing construction would engage artisans, builders and suppliers nationwide.
“If we can originate 10,000 houses across Nigeria, the construction sector will be alive. Carpenters, bricklayers, painters and other artisans will be engaged, injecting liquidity into a sector that has suffered from limited funding,” he added.
Alebiosu noted that the revolving structure of the mortgage repayments would allow funds to be recycled into new housing projects, creating a sustainable model capable of supporting economic activity over the long term.
“With single-digit interest rates in a double-digit inflation environment, we are empowering not just homeowners but future generations who will inherit these assets as wealth,” he said.
Also speaking, Sani Yakubu, National Coordinator of the MOFI Real Estate Investment Fund (MREIF), said the initiative differs from previous government housing interventions by being private sector-led, transparent and structured for sustainability.
Yakubu disclosed that MREIF was recently listed on the Nigerian Exchange, with an initial N250 billion tranche funded by a mix of public and private investors.He added that the fund is regulated by the Securities and Exchange Commission (SEC), independently rated, and structured as an A-grade, tradable investment.
“The mortgages have a 20-year tenure and are refinanced by the Nigerian Mortgage Refinance Company. These features ensure long-term sustainability and insulation from policy reversals,” Yakubu said.
According to him, FirstBank’s nationwide footprint and extensive customer base position it to significantly scale access to affordable mortgages across the country.
He disclosed that since inception, MREIF has supported over 1,100 mortgage applicants, with more transactions currently in the pipeline.With Nigeria’s housing deficit estimated at between 20 and 28 million units, the scheme offers mortgages at about 9.75 per cent interest, requiring a 10 per cent equity contribution and a 20-year repayment period.
The fund also provides off-take guarantees to developers, assuring financiers that completed housing units will be matched with qualified buyers. It is backed by a N1 trillion programme registered with the SEC, starting with a N250 billion tranche and designed to continuously attract private capital.
Explaining FirstBank’s role, Yakubu cited the bank’s size, credibility and extensive branch network as key factors in delivering mortgage access nationwide.
On her part, Kai Orga, Managing Director of ARM Investment Managers Limited, said ARM’s partnership with FirstBank would help accelerate scale and simplify the mortgage process.She disclosed that mortgage approvals under the scheme can now be completed within four to six weeks, significantly improving access to home ownership for Nigerians
