Sterling Bank has joined forces with the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) in a significant move aimed at boosting access to affordable housing finance and expanding homeownership opportunities throughout Nigeria.
The agreement was formalized with David Adebayo, Sterling Bank’s Vice President of Consumer Banking, signing on behalf of the bank at a ceremony at its Lagos headquarters. Mounir Bouba, Executive Director of ARM Investment Managers, which manages MREIF, represented the fund.
This collaboration will allow eligible Nigerians to secure mortgage loans with a fixed annual interest rate of approximately 9.75 percent, with repayment periods extending up to 20 years.
Successful applicants can borrow up to N100 million for residential properties, with the financing covering as much as 90 percent of the property’s value, requiring a down payment of just 10 percent. The program is inclusive, welcoming salary earners with documented income, business owners with financial records, Nigerians living abroad, and both new and existing Sterling Bank customers across the country.
Adebayo highlighted the initiative as a concrete step towards greater financial inclusion and overcoming the systemic obstacles to owning a home in Nigeria. He stated, “This collaboration underscores our dedication to providing patient capital that empowers more Nigerians to achieve sustainable homeownership. By offering competitive rates, extended repayment terms, and high loan-to-value ratios, we are reducing the hurdles to homeownership and enhancing financial inclusion.”
Bouba echoed these sentiments, emphasizing that the partnership exemplifies how public-private cooperation can effectively address Nigeria’s housing deficit. “This MoU is in line with broader efforts to make mortgages more affordable and accessible on a large scale. Through strategic alliances like this, we can attract private investment, strengthen the mortgage market, and implement structured solutions for Nigeria’s housing challenges,” he remarked.
Bouba further revealed that MREIF’s initial investment of N10 billion is anticipated to grow substantially, reflecting strong confidence in Sterling Bank’s ability to drive adoption and effectively disburse the funds. He noted that additional financing will become available as demand increases, positioning the bank to surpass the initial allocation and amplify its impact on nationwide affordable home financing.
MREIF, established by the Ministry of Finance Incorporated, serves as the investment arm of the Federal Ministry of Finance and is a government-backed entity focused on housing finance. Its core mission is to broaden access to low-interest mortgages, support large-scale housing projects, and attract private capital to help close Nigeria’s housing gap.
