The Ministry of Finance Incorporated (MOFI) on monday signed a deal with Family Homes Funds Limited (FHFL) and ARM Investment Managers to unlock single-digit mortgage loans for federal civil servants, in a push to expand housing access through its Real Estate Investment Fund (MREIF).
The partnership aims to address the chronic affordability challenges in Nigeria’s housing sector by cutting down mortgage interest rates and lowering equity contribution requirements for government workers.
Under the agreement signed in Abuja, civil servants will be able to access home loans with just a 10% equity contribution, while benefiting from single-digit interest rates—an ambitious move in a market where double-digit rates have long been the norm.
At the signing event, Armstrong Takang, CEO, MOFI, noted that the agreement is in full alignment with the central goal of MREIF, which is to expand access to housing for Nigerians on a mass scale through a credible and innovative financing model.
Takang also highlighted that the initiative aligns with President Tinubu’s vision of enabling Nigerians to own homes with dignity—through affordable, long-tenure mortgages.
He noted that while the journey began with a 12% interest rate, today’s agreement with FHFL and ARM now marks a major milestone, which is availability of single-digit mortgage rates to federal workers.
He stressed that with only 35,000 active mortgages in a country of 220 million, scaling access is critical.
He explained that the rate reduction was achieved by sourcing cheaper funds, as implementation begins immediately through primary mortgage institutions nationwide.
“This is a strategic cost-management intervention,” Takang noted, highlighting the collaboration’s intent to ease financial barriers to homeownership.
FHFL will co-finance the mortgage pool alongside MREIF, leveraging a funding line from the African Development Bank (AfDB) to reduce the overall cost of capital.
ARM, acting as MREIF’s designated fund manager, is tasked with structuring and executing the financing mechanism.
Loans issued under the scheme will comply with the Nigeria Mortgage Refinance Company (NMRC)’s underwriting standards and will be disbursed through accredited partner mortgage lenders.
The deal supports the federal government’s one million homes initiative, a key component of the Renewed Hope Agenda, which aims to close Nigeria’s housing deficit and stimulate inclusive economic growth.
“Federal civil servants will finally realise their dream of owning decent homes,” Abdul Mutallab Mukhtar, Managing Director of FHFL said.
Wale Odutola, ARM’s Deputy Managing Director, called the fund “a credible vehicle for lasting impact,” citing the importance of blended finance in transforming housing access.
With NGN250 billion in capital already raised, MREIF is approved by Nigeria’s Securities and Exchange Commission (SEC) and has received top ratings from local agencies—AAA from Agusto and AA from GCR.
Led by private sector fund managers, it has begun disbursing funds across three geopolitical zones.
Sani Mustapha, National Coordinator of MREIF, highlighted that the fund is partnering with over ten CBN-approved financial institutions, including commercial and mortgage banks.
He said a pilot is launching in key regions to demonstrate feasibility, with the goal of scaling the service across the country and ensuring broad, seamless access to affordable housing finance.
