The Federal Government has launched the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF), valued at N250 billion.
The initiative, which was unveiled at a signing ceremony in Abuja, is set to provide long-term, low-cost mortgage financing while revitalizing the housing and construction sectors.
Presiding over the launch, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, noted the potential of the initiative to transform the country’s housing delivery space.
He stated that MREIF is designed to bridge Nigeria’s persistent housing finance gap by offering affordable mortgages with repayment terms extending up to 25 years.
This innovative approach he said contrasts sharply with the high-interest, short-tenor loans typically available through commercial banks.
“This fund is a testament to the Federal Government’s commitment to addressing critical socio-economic challenges. It aligns with President Bola Ahmed Tinubu’s vision of fostering homeownership, creating jobs, and driving economic development,” Mr. Edun remarked.
The MREIF will roll out in two phases. The first series, valued at N150 billion, is expected to attract significant private sector investment. A second series, projected to raise an additional N100 billion, will further consolidate the programme’s impact.
According to Mr. Edun, the public-private partnership model adopted for the fund aims to incentivize developers to construct affordable housing units. This approach not only addresses the housing deficit but also stimulates job creation and enhances commercial activity in the real estate and construction industries.
Dr. Armstrong Takang, Managing Director of MOFI, stated the broader implications of the initiative. “This fund is more than a housing project; it’s a generational wealth-building opportunity. By enabling sustainable homeownership, we are creating pathways for Nigerians to build enduring financial security,” Dr. Takang explained.
The initiative is expected to redefine housing finance in Nigeria by lowering entry barriers for potential homeowners and fostering a more inclusive real estate market. With mortgages tailored for affordability and longevity, more Nigerians will gain access to the dream of homeownership.
The MREIF is anticipated to drive substantial growth across various sectors. By energizing the housing and construction industries, the initiative will create thousands of jobs and catalyze economic activities in related fields, including manufacturing and financial services.
