Housing Deficit: FirstBank, Finance Ministry Incorporated, ARM Roll Out Single-digit Mortgage Scheme

The FirstBank of Nigeria Limited, in partnership with the Ministry of Finance Incorporated (MOFI) and ARM Investment Managers, has unveiled a single-digit mortgage scheme aimed at tackling Nigeria’s massive housing deficit while stimulating economic growth and job creation.

The initiative, known as the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF), is a public-private initiative introduced under President Bola Tinubu’s administration to tackle Nigeria’s housing deficit. It is backed by the federal government through the Ministry of Finance Incorporated (MOFI), powered by FirstBank, and managed by ARM Investment Managers.

Speaking at the rollout of the initiative in Abuja yesterday, the managing director and chief executive officer of FirstBank, Olusegun Alebiosu, described the scheme as both an economic and social revolution that would reshape Nigeria’s housing and construction sector.

According to Alebiosu, the social impact lies in enabling more Nigerians to own homes, thereby addressing deep-rooted housing challenges, while the economic benefits stem from offering low-interest mortgages in a high-interest-rate environment.

He explained that the difference between borrowing at 20 per cent and at a single-digit rate over a 20-year period is enormous, effectively giving beneficiaries far greater financial leverage and long-term value. Beyond home ownership, he noted that the scheme would unlock widespread employment opportunities across the construction value chain.

“If we are able to originate 10,000 houses across Nigeria, the construction sector will be alive. Carpenters, bricklayers, painters and artisans of all kinds will be engaged. We can turn Nigeria into a construction site, injecting liquidity into a sector that has long suffered from limited funding,” Alebiosu said.

Also speaking, the national coordinator of the MOFI Real Estate Investment Fund (MREIF), Sani Yakubu, said the intervention differs significantly from previous government housing initiatives by being private-sector driven, transparent, and structured for long-term sustainability.

Yakubu disclosed that MREIF was recently launched on the Nigerian Exchange, with the first tranche of N250 billion jointly funded by public and private sector investors.

The fund, he said, is supervised by the Securities and Exchange Commission, rated by independent agencies and structured as an A-grade, tradable investment.

“The mortgages have a 20-year tenure and the fund is refinanced by the Nigerian Mortgage Refinance Company. These features clearly show that this is a long-term and sustainable programme, protected from policy reversals,” he said.

Speaking on the expected outcomes, Yakubu noted that FirstBank’s nationwide reach and vast customer base would enable millions of Nigerians to access affordable mortgages, while boosting employment, construction activity and economic inclusion.

He added that since commencement, MREIF has already supported over 1,100 mortgage applicants, with more transactions in the pipeline, and expressed confidence that FirstBank’s involvement would significantly scale the impact.

He described the fund as a carefully designed vehicle created to address both demand and supply challenges in Nigeria’s housing sector.

“With an estimated housing deficit of between 20 and 28 million units, the initiative seeks to provide affordable mortgages at about 9.75 per cent interest, with only a 10 per cent deposit and a 20-year repayment period.

Explaining the choice of FirstBank as a key partner, Yakubu cited the bank’s size, reputation and extensive branch network, which he said is capable of delivering mortgage access to Nigerians across the country.

On her part, the managing director of ARM Investment Managers Limited, Kai Orga, said ARM had already supported financial inclusion and home ownership through mortgage access. According to her, the partnership with FirstBank would accelerate scale, improve accessibility, and simplify the mortgage process, with approvals now possible within 4 to 6 weeks.