MOFI Partners 20 Banks To Deploy N1trn In Mortgage Scheme

Ministry of Finance Incorporated (MOFI) has unveiled details of a N1 trillion private sector-driven initiative designed to transform Nigeria’s mortgage market and stimulate economic growth.
The intervention is aimed at addressing long-standing structural challenges in the housing sector, while unlocking affordable financing for prospective homeowners.
Speaking at the 2025 Annual General Meeting of the Finance Correspondents Association of Nigeria (FICAN) in Abuja, MOFI’s executive director, Sani Yakubu, disclosed that N75 billion has already been deployed into the mortgage sector.

He said the funds were released following the successful raising of an initial N250 billion tranche under the programme.
Participating financial institutions include Sterling Bank, Stanbic IBTC Bank and Infinity Mortgage Bank, among others.

Yakubu described Nigeria’s housing market as facing what he termed a “life or death” supply gap, driven by both demand and supply constraints.

According to him, developers often struggle to secure affordable financing because lenders question the viability of their projects. “The toughest question developers face is: who is going to buy the houses?” Yakubu said.

To address this challenge, MOFI introduced an off-take guarantee mechanism under the scheme.

He explained that the structure allows developers to access cheaper capital by demonstrating that buyers are already lined up through pre-approved mortgages.

“By giving an off-take guarantee, we stand ready to provide mortgages to Nigerians to buy those units, making developers more bankable,” he added.

Yakubu noted that the operational processes of the scheme have been fully tested, with risk mitigation frameworks embedded in its design.

A key objective of the programme is to replace the short-term, five-year repayment structures common in commercial banking with long-term mortgages of up to 20 years.

He said the mortgages are currently offered at an interest rate of 9.75 per cent, significantly below prevailing market rates.
Beneficiaries are required to provide only a 10 per cent equity contribution.

Since March 2024, the fund has facilitated an average of N10 billion in mortgages monthly, according to Yakubu.

Rather than bypassing the banking system, MOFI is working through 20 financial institutions, comprising 10 commercial banks and 10 mortgage banks.

Yakubu said this collaborative approach is designed to deepen the mortgage ecosystem and strengthen financial intermediation. He cited AG Mortgage Bank as an example of the programme’s impact.

According to him, the bank has processed N6.7 billion in mortgages since the scheme commenced, exceeding the total volume of business it recorded in its 21-year history prior to the initiative.

In a move to enhance transparency and market access, MOFI has also launched a digital platform showcasing nearly 5,000 housing units nationwide. The portal enables Nigerians, including those in the diaspora, to view available properties and initiate mortgage applications online.

Yakubu said the platform bridges the gap between developers and prospective homeowners, while promoting a national housing market.

The N1 trillion programme has been registered with the Securities and Exchange Commission (SEC) and will be executed in tranches. MOFI said the initiative provides a sustainable framework for affordable housing delivery and improved capital flow within the Nigerian economy.