Ten Banks Get Approval To Provide Low Interest Housing Loans For Civil Servants
As part of measures to improve housing access for federal employees, the federal government has unveiled a new mortgage scheme aimed at reducing the cost and entry requirements for home ownership among civil servants.
Launched in Abuja on Monday, the initiative is being driven by a partnership between the Ministry of Finance Incorporated (MOFI), Family Homes Funds Limited (FHFL), and ARM Investment Managers, the fund managers of the MOFI Real Estate Investment Fund (MREIF).
Under the new framework, federal civil servants will be able to access long-term housing loans at interest rates below 10 per cent, substantially lower than current market offerings.
Additionally, the equity contribution requirement has been cut to just 10 per cent, significantly lowering the financial barrier for first-time homeowners.
Speaking at the Memorandum of Understanding (MoU) signing ceremony, MOFI Managing Director Dr Armstrong Takang highlighted the initiative as a cornerstone of President Bola Ahmed Tinubu’s vision to promote affordable and dignified housing for Nigerians.
He said, “This is about ensuring Nigerians can own homes at interest rates that make sense. We’ve capped the mortgage rate under this fund at 12 per cent, but we are committed to pushing it further down—and now, with this agreement, we’re offering single-digit rates.”
The MREIF initiative will be financed through a combination of domestic and international sources. A key component is a credit line secured by FHFL from the African Development Bank (AfDB), which will reduce the cost of funds and make low-interest mortgages more viable.
The mortgage facility is now available through a network of selected commercial and mortgage banks licensed by the Central Bank of Nigeria (CBN).
These institutions will adhere to the underwriting standards set by the Nigeria Mortgage Refinance Company (NMRC) to ensure compliance and proper risk management.
Sani Yakubu, National Coordinator of MREIF, described the initiative as a major step toward expanding access to affordable housing loans and boosting mortgage penetration nationwide.
“We’re rolling out this programme with an initial pilot in key locations across the country. The idea is to test and refine the system, then scale it to reach more Nigerians,” Yakubu said. “Already, over ten financial institutions have been onboarded, with more expected to join soon.”
Yakubu added that all participating institutions have CBN approval and experience in mortgage financing, ensuring the scheme is implemented efficiently.
Mounir Bouba, Executive Director at ARM Investment Managers, explained that the MREIF fund is fully registered with the Securities and Exchange Commission (SEC) and adheres to regulatory and governance best practices.
The fund is structured to finance up to 75 per cent of housing projects through a blended finance approach, enabling large-scale issuance of affordable mortgages.
Bouba also noted the fund’s role in providing public guarantees to developers, which will help strengthen the broader housing ecosystem and ensure the delivery of quality homes.
“The MoU we signed today allows Nigerians to access home loans at rates below 10 per cent,” Bouba said. “We are actively engaging more stakeholders to further enhance this scheme.”
According to MOFI, the new mortgage initiative is a strategic effort to address Nigeria’s estimated 20-million-unit housing deficit by improving affordability, increasing mortgage access, and encouraging deeper private sector involvement in the housing sector.
Ten Banks Get Approval To Provide Low Interest Housing Loans For Civil Servants is first published on The Whistler Newspaper
