The Ministry of Finance Incorporated (MOFI) has subscribed to the N150 billion series 1 offering under the MOFI Real Estate Investment Fund (MREIF) as the sponsor and anchor investor.
The milestone marks a major step towards addressing Nigeria’s housing deficit and expanding access to affordable homeownership.
MREIF is designed to provide long-term, affordable financing at scale for housing developments and homeownership. The initiative aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda, tackling Nigeria’s estimated 20 million housing deficits through sustainable and innovative solutions, MOFI said in a statement.
The next phase, Series 2, will seek to raise an additional N100 billion from private sector investors, bringing the total funding under this initial series to N250 billion. MREIF’s broader vision is to mobilise N1 trillion to fully transform Nigeria’s housing sector and related infrastructure.
MREIF is designed as a bold public-private partnership (PPP), addressing systemic challenges in housing finance.
It prioritises affordable mortgages with repayment tenors of up to 25 years, offering interest rates envisioned at 11-12 per cent, which is far below prevailing commercial market rates. This is made possible through a blended finance approach, where subsidised funding from MOFI is combined with private sector funding at market rates. The collaborative financing structure enables more favourable mortgage terms, thereby expanding access to affordable housing finance for millions of Nigerians.
At a signing ceremony hosted by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, MOFI celebrated the imminent completion of Series 1 following the receipt of initial approvals from the Securities and Exchange Commission (SEC).
“This N150 billion subscription demonstrates the government’s commitment to fostering accessible housing, creating jobs within the sector and driving economic growth,” said Edun.
CEO of MOFI, Dr Armstrong Takang, added: “This achievement is a pivotal moment for Nigeria’s housing sector. It sets the foundation for private sector participation and reinforces our vision to deliver sustainable housing solutions for all Nigerians. We thank the President for his bold leadership in tackling our nation’s housing deficit.”
The series 1, fully subscribed to by MOFI, lays the foundation for Series 2, which will seek to mobilize NGN100 billion from a wide range of private sector institutional investors.
Chairman of the Senate Committee on Public Accounts, Ahmed Aliyu Wadada, described the initiative as “a milestone in the history of Nigeria”.
He added: “This initiative reflects the Renewed Hope Agenda’s focus on creating sustainable homeownership opportunities for Nigerians.”
