The Federal Government has launched the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF), a N250 billion initiative aimed at providing affordable, long-term mortgage financing and driving economic growth through the housing and construction industries.
This development was disclosed in a statement by the Federal Ministry of Finance on Friday via its official X account (formerly Twitter).
According to the statement, the fund will be rolled out in two phases. The first phase, valued at N150 billion, is designed to attract private sector investments, while the second phase aims to secure an additional N100 billion. The initiative aligns with President Bola Ahmed Tinubu’s vision of expanding homeownership opportunities, creating jobs, and bolstering economic growth.
MREIF is structured as a public-private partnership to address the persistent challenges in Nigeria’s housing finance system. It offers affordable mortgage options with repayment periods of up to 25 years and interest rates projected at 11-12 percent significantly lower than prevailing commercial rates.
During a signing ceremony chaired by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, it was announced that Series 1 of the fund is nearing completion following approvals from the Securities and Exchange Commission (SEC).
“This N150 billion subscription underscores the government’s commitment to making housing accessible, stimulating job creation, and fostering economic growth,” Edun stated.
Armstrong Takang, Managing Director and CEO of MOFI, hailed the initiative as transformative for Nigeria’s housing sector. “This milestone lays the groundwork for private sector involvement and advances our goal of delivering sustainable housing solutions for all Nigerians. We are grateful to the President for his visionary leadership in addressing the nation’s housing deficit,” he said.
Ahmed Aliyu Wadada, Chairman of the Senate Committee on Public Accounts, described the fund as a groundbreaking achievement. “This initiative exemplifies the Renewed Hope Agenda’s dedication to creating sustainable homeownership opportunities for Nigerians,” he remarked.
The MREIF is poised to serve as a catalyst for the nation’s housing market, providing low-cost financing while stimulating broader economic development.
