Breaking Down the N2.2bn Housing Boost: Gateway Mortgage Bank and MOFI Partner for Affordable Homes

 

​The Nigerian housing sector has just received a major financial injection as Gateway Mortgage Bank Limited secures N2.2bn MOFI fund to accelerate homeownership across the country. This strategic partnership with the Ministry of Finance Incorporated (MOFI) is a direct response to Nigeria's staggering housing deficit, which is currently estimated to be over 20 million units. By unlocking this significant pool of capital, Gateway Mortgage Bank is positioned to offer more accessible, long-term financing to everyday Nigerians. In this deep dive, we explore how this N2.2 billion fund will be utilized, the role of the MOFI Real Estate Investment Fund (MREIF), and what this means for first-time homebuyers in 2026.

​The Power of Blended Finance: Understanding the N2.2 Billion Injection

​The N2.2 billion secured by Gateway Mortgage Bank is part of a larger, federal government-backed initiative aimed at revolutionizing how Nigerians access property. This funding comes through the MOFI Real Estate Investment Fund (MREIF), a N1 trillion vehicle designed to bridge the gap between high-interest commercial loans and the desperate need for affordable housing.

​For years, the Nigerian mortgage market has been stifled by double-digit interest rates, often soaring above 25%. The MOFI fund changes the narrative by providing "blended finance." By combining government-seeded capital with private sector investment, institutions like Gateway Mortgage Bank can now offer mortgages at a fraction of the usual market cost.

​Key Highlights of the Funding:

• ​Fund Origin: Ministry of Finance Incorporated (MOFI) via MREIF.
• ​Target: Boosting homeownership for civil servants, artisans, and private-sector employees.
• ​Objective: To provide low-cost, long-term liquidity to the mortgage banking sector.

​Gateway Mortgage Bank’s Role in Reducing the Housing Deficit

​As a leading Primary Mortgage Bank (PMB) in Nigeria, Gateway Mortgage Bank Limited has been at the forefront of providing housing solutions. Securing this N2.2 billion facility allows the bank to expand its "G-MREIF" product line, which is specifically tailored for first-time owners.

​The bank acts as the "origination engine." While MOFI provides the capital, Gateway Mortgage Bank handles the underwriting, ensuring that the loans go to credible Nigerians who can maintain a steady repayment schedule. This partnership effectively removes the liquidity barrier that often prevents mortgage banks from lending to a larger pool of applicants.

​Why This Fund is a Game-Changer for Homebuyers

​For the average Nigerian, the biggest obstacle to owning a home isn't just the total price of the house, but the affordability of the monthly payments. The N2.2bn fund addresses this through three critical pillars:

1. ​Lower Interest Rates: Unlike commercial bank loans that can fluctuate wildly, mortgages under this scheme are projected to remain in the single-digit or low double-digit range (typically 9.75% to 12%), making them significantly more affordable.
2. ​Extended Tenors: One of the most attractive features is the repayment period. Homeowners can now access loans with tenors of up to 20 or 25 years, allowing the cost of the home to be spread out over their working life.
3. ​Low Equity Requirements: Traditionally, banks might ask for a 30% down payment. Under this FG-backed reform, the required equity contribution is often as low as 10%, making it much easier for young professionals to enter the property market.

​The Strategic Vision of MOFI and MREIF

​The Ministry of Finance Incorporated, led by CEO Dr. Armstrong Takang, has been clear about its mandate: to manage federal assets professionally and catalyze growth in priority sectors. Housing is a top priority under President Bola Ahmed Tinubu’s Renewed Hope Agenda.

​By listing Series 2 of the MREIF on the Nigerian Exchange Limited (NGX) and partnering with banks like Gateway, MOFI is creating a sustainable ecosystem. This isn't just about a one-time grant; it’s about building a revolving fund that grows as homeowners pay back their loans, eventually reaching the goal of N1 trillion in total housing investments.

​How to Apply for a MOFI-Backed Mortgage with Gateway Bank

​With the N2.2 billion now available, Gateway Mortgage Bank is inviting eligible Nigerians to apply. The process has been streamlined to ensure transparency and speed:

• ​Step 1: Open a specialized G-MREIF account with Gateway Mortgage Bank.
• ​Step 2: Choose a property from a list of verified developers or provide your own for evaluation.
• ​Step 3: Submit required documentation, including proof of income and a valid means of identification.
• ​Step 4: Upon approval, the bank provides the offtake guarantee, and the construction or acquisition begins.

​Conclusion: A New Dawn for Nigerian Homeownership

​The news that Gateway Mortgage Bank Limited has secured N2.2bn in MOFI funding is a beacon of hope in a challenging economic climate. It proves that through strategic public-private partnerships, the dream of homeownership can become a reality for millions of Nigerians. As this capital begins to filter into the market, we can expect to see a surge in construction activity, job creation, and, most importantly, more families transitioning from being "renters" to "owners."