Over 100 Mortgages Issued by MREIF
…MOFI, Shelter Afrique Forge Housing Alliance
By Patience Ikpeme
In a significant boost to Nigeria’s housing sector, the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF) has facilitated the issuance of more than 100 mortgages, valued between N50 million and N100 million.
This development, managed by MOFI’s investment partners, promises to empower mortgage banks to extend homeownership opportunities to numerous Nigerians.
The initiative gained further momentum with the signing of a strategic Memorandum of Understanding (MoU) between MOFI and Shelter Afrique Development Bank in Abuja on Wednesday. Speaking at the ceremony, MOFI’s Managing Director, Dr. Armstrong Takang, unveiled a “local currency solution” that enables the provision of mortgages at an attractive interest rate of around 4 percent, with extended repayment periods potentially stretching up to 25 years, depending on the borrower’s age.
Dr. Takang detailed a two-pronged approach, addressing both the demand and supply sides of the housing market. While facilitating mortgages for prospective homeowners, the program also offers guarantees to real estate developers undertaking projects that cater to these applicants. These guarantees then enable developers to approach financial institutions for the necessary construction financing.
The collaboration with Shelter Afrique is crucial to this supply-side strategy. Dr. Takang explained that developers who secure MOFI’s guarantees can then leverage these to apply for construction financing from Shelter Afrique. This mechanism aims to unlock greater opportunities for developers to build homes for eligible subscribers who require mortgage facilities. MOFI’s role in this process is primarily to issue the demand-side mortgages and provide supply-side guarantees, rather than direct construction financing.
Shelter Afrique’s Managing Director, Dr. Thierno-Habib Hann, hailed the partnership as a “strategic alignment” between the two institutions, driven by a shared vision for Africa’s future. He emphasized its potential to “accelerate investment flows, unlock new opportunities in the housing and urban development sectors, and create a tangible impact on lives and economies.”
Dr. Hann underscored Nigeria’s pivotal role in this alliance, recognizing it as a leading African economy, a hub of innovation, and a significant shareholder in Shelter Afrique Development Bank. He noted that Nigeria’s “dynamism, its market depth and its ambitious infrastructure agenda make it a natural platform for scaling solutions that will shape the future of housing and urban development across Africa.” Shelter Afrique brings to the partnership its extensive experience in financing housing ecosystems across 44 African member states and its expertise in transforming investment opportunities into viable projects.
Dr. Hann also highlighted the foundational role of the African Development Bank in establishing Shelter Afrique and its continued involvement as a shareholder, alongside the African Reinsurance Corporation (Africa Re). He commended MOFI’s strategic mandate and financial stewardship in leveraging public assets and private sector expertise to drive large-scale development outcomes. The collective focus, he stated, is on “designing and delivering impactful projects, structuring innovative financing models, and enhancing the investment attractiveness of the housing sector.”
The partnership, according to Dr. Hann, is about converting ambition into tangible results, recognizing housing as a catalyst for economic opportunity, productivity, resilience, and dignity. He expressed optimism that this collaboration, with Nigeria’s leadership and Shelter Afrique’s continental perspective, marks the beginning of a new era of sustainable and inclusive growth for the nation and the wider continent.
Mrs. Kai Orga, Managing Director of ARM Investment Managers, the investment managers for the MOFI Real Estate Investment Fund, confirmed the issuance of over 100 mortgages under the MREIF initiative and assured stakeholders of their firm’s capacity to meet the anticipated demand for affordable housing finance. This collaborative effort between MOFI and Shelter Afrique signals a significant step towards addressing Nigeria’s housing deficit and fostering economic development through homeownership.
