FG Launches N100 Billion Real Estate Financing Scheme to Tackle Housing Deficit
By Patience Ikpeme
The Federal Government has launched a N100 billion private sector-led real estate financing scheme under the Series 2 Offering of the MOFI Real Estate Investment Fund (MREIF).
This initiative is a significant step towards the fund’s ultimate goal of raising N1 trillion to transform Nigeria’s housing sector and enable millions of Nigerians to access affordable homeownership.
MREIF prioritizes affordable mortgage financing with repayment tenors of up to 25 years and interest rates targeted at 11-12%, significantly lower than prevailing commercial rates. This favorable financing structure is achieved through a blended finance approach, combining subsidized public funding with market-rate private sector investments.
The Ministry of Finance Incorporated (MOFI) is leading this effort, working with key private sector players such as asset managers, advisors, and issuing houses to raise the N100 billion from the capital market. This second phase builds on the successful N150 billion Series 1 subscription, bringing the total initial funding under MREIF to N250 billion.
MREIF is specifically designed to address Nigeria’s critical housing deficit by providing long-term, affordable financing for housing developments and homeownership. The fund aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda and aims to bridge Nigeria’s estimated 20 million housing deficit through innovative and sustainable financial solutions.
While Series 1 was fully subscribed by MOFI as the Sponsor and Anchor Investor, Series 2 is strategically designed to attract private sector participation, mobilizing N100 billion from institutional investors. This move underscores MOFI’s commitment to fostering a collaborative public-private partnership to scale up housing finance and drive inclusive economic growth.
Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, emphasized the crucial role of private sector involvement in expanding the housing sector. “The successful completion of Series 1 has demonstrated the government’s commitment to making homeownership more accessible,” he stated. “Now, with Series 2, we are opening the doors for private investors to join this transformative journey, creating jobs, enhancing infrastructure, and strengthening the economy.”
Dr. Armstrong Takang, MD/CEO of MOFI, reaffirmed the fund’s long-term vision, stating that “Series 2 marks a critical step toward unlocking private capital at scale for Nigeria’s housing market. By leveraging blended finance, we are creating a sustainable framework for affordable homeownership that benefits all Nigerians.”
The Chairman of the MOFI Board, Dr. Shamsudeen Usman, praised the initiative, describing it as “a landmark achievement in Nigeria’s housing sector.” He added, “The Renewed Hope Agenda is focused on delivering sustainable homeownership opportunities for Nigerians, and MREIF is a major driver of this vision.”
With Series 2, MOFI is paving the way for deeper private sector collaboration to accelerate housing development across the nation. As the fund progresses toward its N1 trillion goal, it will continue to catalyze investments that reshape Nigeria’s housing landscape and improve the lives of millions.
