The federal government has launched a N100 billion private sector-led real estate financing scheme aimed at expanding access to affordable housing for Nigerians.
This initiative is part of the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF), marking the second phase of funding under the program.
MREIF’s long-term goal is to raise N1 trillion to support Nigeria’s housing sector, with a focus on providing affordable, low-cost mortgage financing for homeownership.
The latest funding, Series 2, is private sector-driven, allowing businesses and investors to play a pivotal role in the development of affordable housing across the country.
A key feature of the financing scheme is the provision of affordable mortgage loans with repayment periods of up to 25 years, at interest rates of 11-12 percent—significantly lower than those offered by commercial banks.
This structure is made possible through a blended finance model, which combines public funding sourced at one percent with private sector investments to reduce borrowing costs.
The Ministry of Finance Incorporated (MOFI) is spearheading efforts to attract major private sector players, such as asset managers, financial advisers, and issuing houses, to raise the N100 billion from the capital market.
This second phase of the initiative builds on the success of Series 1, which raised N150 billion, bringing the total funding secured for the housing sector to N250 billion so far.
With Nigeria facing an estimated 20 million housing deficit, MREIF is designed to provide long-term financing for housing development, ultimately helping millions of Nigerians achieve homeownership.
Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, emphasized the role of the private sector in boosting the housing sector.
“The successful completion of Series 1 shows the government’s dedication to making homeownership accessible. Now, with Series 2, we are inviting private investors to be part of this journey, creating jobs, improving infrastructure, and strengthening the economy,” he stated.
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Dr. Armstrong Takang, MD/CEO of MOFI, described Series 2 as a significant step toward unlocking private capital for the housing market. “By using blended finance, we are establishing a sustainable system for affordable homeownership that will benefit all Nigerians,” he said.
Dr. Shamsudeen Usman, Chairman of the MOFI Board, hailed MREIF as a landmark achievement in Nigeria’s housing sector, reinforcing its importance within the context of the government’s broader development agenda.
“The Renewed Hope Agenda is focused on delivering sustainable homeownership opportunities for Nigerians, and MREIF is a major driver of this vision,” he added.
This initiative is seen as a critical step toward addressing the nation’s housing challenges and facilitating broader economic development through increased homeownership and infrastructure improvement.
