FG opens single-digit mortgage loans for Nigerians

The Ministry of Finance Incorporated (MOFI) has announced that Nigerians have begun accessing affordable long-term mortgage facilities at a single-digit interest rate of 9.75 percent.  The mortgage facility, which offers repayment periods of up to 20 years, is part of a major initiative to address Nigerias housing deficit, estimated at around 20 million units. Chief Executive Officer of MOFI, Dr. Armstrong Takang, revealed that several beneficiaries from across the country’s geopolitical zones have successfully tapped into the facility less than a month after its launch. He said the programme is anchored on the newly established MOFI Real Estate Investment Fund (MREIF), a Securities and Exchange Commission (SEC)-regulated housing fund intended to transform Nigerias housing finance landscape. Speaking at the Africa International Housing Show (AIHS) in Abuja, Dr. Takang described the MREIF as a critical and long-overdue intervention in the housing sector with the potential to significantly improve the entire housing value chain and provide long-term impact. He stated that the N1 trillion fund is structured to deliver market-aligned mortgage solutions while resolving structural issues that have constrained Nigerias housing finance sector. These include short mortgage tenors, high interest rates, poor refinancing frameworks, and lack of sustainable models for housing delivery. MREIF was designed to hedge against liquidity challenges, corporate governance issues, accessibility barriers, and the perennial challenge of sustaining initiatives for the long-term, Takang said. The fund, according to him, operates under a Public-Private Partnership (PPP) arrangement, with MOFI serving solely as the sponsor. It is independently managed by a Fund Manager and is open to institutional investors. The fund has received high-level credit ratings, AAA from Agusto and AA from Global Credit Rating (GCR), which enhances its appeal in financial markets. Dr. Takang also highlighted that the MREIF does more than offer mortgages to homebuyers. It provides offtake guarantees to developers, ensuring that built properties are absorbed by the market and that housing projects remain commercially viable. He emphasized that through innovative and sustainable financing, the federal government aims to close the housing gap and redefine housing access in Nigeria.The post FG opens single-digit mortgage loans for Nigerians appeared first on Linda Ikeji Blog.