FG’s N1tr Real Estate Fund Secures N250bn in Pilot Phase
By Patience Ikpeme
The Ministry of Finance Incorporated (MOFI) has announced the successful completion of the pilot fundraising for its N1 trillion MOFI Real Estate Investment Fund (MREIF), securing N250 billion.
This multi-tranche programme aims to revolutionize Nigeria’s housing sector through significant capital mobilization.
The N100 billion Series 2 issuance achieved full subscription, drawing substantial interest from a diverse range of institutional investors. This development signals strong market confidence in the Fund’s design and its potential for long-term growth.
Following MOFI’s initial N150 billion investment in Series 1, the Series 2 offering witnessed robust participation from the private sector. This influx of private capital positions MREIF as a key platform for channeling funds into Nigeria’s real estate market.
The Fund’s structure prioritizes delivering competitive returns while facilitating affordable homeownership through the provision of long-term, low-cost mortgage financing on a large scale.
MREIF has secured an Aaa rating from Agusto and an AA rating from GCR, solidifying its standing as a reliable, market-driven investment vehicle aimed at bridging Nigeria’s housing finance gap.
“The successful conclusion of this pilot phase signifies the commencement of a much-needed transformation within Nigeria’s housing sector,” stated Wale Edun, Minister of Finance and Coordinating Minister of the Economy. “The complete subscription of the Series 2 offering reveals the strong demand for a structured, long-term housing finance solution, and confirms the private sector’s trust in MREIF as a sustainable investment option.”
MREIF is designed to address both housing supply and demand challenges by offering: affordable mortgage financing with repayment periods of up to 20 years at interest rates as low as 12%, significantly lower than commercial rates, and off-take guarantees for developers, thereby unlocking financing for large-scale housing projects.
“MREIF is creating new investment opportunities within Nigeria’s housing sector,” said Dr. Armstrong Ume Takang, MD/CEO of MOFI. “The full subscription of this series demonstrates investor confidence in the Fund’s structure and long-term potential, which MOFI fully supports.”
The Fund is designed to integrate seamlessly with commercial and mortgage banks, developers, and other financial institutions to scale long-term housing finance.
MOFI has opened engagement opportunities for investors, encouraging institutional partners to explore participation in future funding rounds, which will focus on expanding investor involvement and accelerating housing development.
