Sterling Bank has formally entered into a partnership with the Ministry of Finance Incorporated Real Estate Investment Fund to launch a new, long-term mortgage initiative.

This is a move aimed at reducing the nation’s significant housing deficit.

The agreement, sealed at Sterling Bank’s headquarters in Lagos, promises to expand homeownership opportunities for a wide range of Nigerians through accessible financing.

Under the terms of the new partnership, eligible applicants can access mortgage loans of up to N100 m.

The facility, according to a statement on Sunday, is structured with a fixed interest rate of approximately 9.75 per cent per annum and a repayment tenure extending up to 20 years.

To further lower the entry barrier for prospective homeowners, the financing covers up to 90 per cent of the property value, requiring only a 10 per cent equity contribution.

Speaking on the strategic importance of the initiative, the Vice President of Consumer Banking at Sterling Bank, David Adebayo, described the collaboration as a pivotal step in strengthening financial inclusion.

“This collaboration reflects our commitment to providing patient capital that enables more Nigerians to own homes sustainably.

“By combining competitive pricing with longer tenors and high loan-to-value ratios, we are lowering the barriers to homeownership and strengthening financial inclusion,” Adebayo said.

The sentiment was echoed by Mounir Bouba, Executive Director of ARM Investment Managers, the fund managers for MREIF, who emphasised the role of public-private cooperation in driving structured housing solutions.

“This MoU aligns with broader efforts to make mortgages more affordable and accessible at scale.

“Through strategic partnerships such as this, we can catalyse private capital, deepen the mortgage market and drive structured solutions to Nigeria’s housing challenge,” Bouba stated.

Bouba further highlighted the scalability of the fund, noting that an initial N10 bn commitment is expected to grow as demand increases, with provisions to expand the facility to ensure maximum impact across the country.

The mortgage programme is designed to be inclusive, open to salary earners with verifiable income, business owners with documented financial records, and Nigerians in the diaspora. Both new and existing Sterling Bank customers across the nation are eligible to apply.

MREIF, a government-backed vehicle established by the Ministry of Finance Inc., serves as a cornerstone of this initiative. By mobilising private investment and providing low-interest mortgage support, the fund aims to tackle the structural barriers that have historically limited access to housing finance in Nigeria.