Manny Ita –
Home Ownership
First Bank of Nigeria has partnered with the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) to introduce a mortgage product offering single-digit interest rates, a development announced on March 14, 2026, as part of broader efforts to address Nigeria’s persistent housing deficit and improve access to affordable home ownership.
Under the arrangement, eligible applicants will be able to access mortgage financing at an interest rate of 9.75 percent, a significant reduction compared with prevailing commercial lending rates in Nigeria, which frequently exceed 30 percent.
The mortgage facility is backed by a ₦1 trillion funding pool supported by the Federal Government of Nigeria and is structured to provide long-term financing for individuals seeking to purchase residential property across the country.
According to officials familiar with the programme, qualified salary earners and entrepreneurs will be able to access mortgage loans of up to ₦100 million with repayment periods of up to 20 years under the initiative, which is expected to commence disbursement later in 2026.
A representative associated with the programme said the initiative is designed to reduce the financial barriers that have historically limited access to mortgage financing in Nigeria.
“The objective is to make mortgages accessible to more Nigerians by providing financing at rates that are sustainable over the long term,” the official said.
Nigeria’s housing sector has long faced a significant supply gap, with industry stakeholders estimating the deficit to run into millions of housing units, driven largely by high construction costs, limited long-term financing and elevated lending rates within the banking sector.
Financial analysts say the introduction of a mortgage product at 9.75 percent could stimulate demand in the residential property market by lowering borrowing costs for individuals who have previously been unable to secure mortgage financing.
One financial expert described the initiative as “a significant development for expanding property ownership opportunities,” noting that the single-digit rate stands out within Nigeria’s current credit environment.
The expert added that the programme could particularly benefit young professionals seeking to purchase their first homes as well as Nigerians in the diaspora interested in investing in property in the country.
Industry observers also note that improved access to mortgage financing could stimulate broader economic activity by encouraging residential construction, supporting developers and creating additional employment within the housing value chain.
Officials associated with the programme said the collaboration between FirstBank and MREIF reflects continuing efforts to strengthen Nigeria’s housing finance framework while promoting sustainable growth in the country’s real estate sector.
