The Ministry of Finance Incorporated (MODI) is set to invest N1 trillion in housing schemes across Africa.

The Chief Executive Officer of MOFI, Dr Armstrong Takang, disclosed this in Abuja while signing a memorandum of understanding (MoU) with Shelter Afrique Development Bank. He said both bodies are set to expand structured financing for MOFI Real Estate Investment Fund (MREIF).

Takang, who decried the housing deficits in most African countries, insisted that solutions to bridging the gap lie within the African shores.

He explained: “It is significant for us because we believe and continue to believe that solutions to African problems have to come from Africans and African institutions. Housing is one of those areas of challenges in the continent but also presents incredible opportunities for African businesses.”

Takang lauded the Federal Government for giving MOFI the necessary financial and political backing, saying, “MREIF has a N1 trillion programme which will be raised in series. We have already raised N150 billion in series one while another N100 billion has been raised in series two. So, altogether we have N250 billion that is with the custodians and the disbursement has already started.”

He added that MOFI has the backing of the market to raise more funds for the continental housing projects.

“We will be back in the market to raise more funds because we believe that even a trillion naira is a drop in the ocean when you think about the scale of the housing deficit that we have,” he said.

The MOFI boss decried a lack of facilities in local currency which is impeding investment in housing schemes across Africa.

“What distinguishes this facility from others is the fact that it is in local currency. A lot of times people find financing for housing programmes hard because they are often in foreign currency, and the currency risk makes it difficult to deploy such capital. But here we have a solution that has local currency allowing us to issue mortgages at large scale and low interest for around 12 per cent, and longer tenures, minimum 10 years, 15, and even 25 years depending upon the age of the applicant,” he stated.

The programme involves issuing mortgages through the issuance of off-take guarantees.
Takang hinted that with an off-take guarantee, mortgage practitioners can approach financial institutions to raise the construction financing that they need.

Providing background information on the roles expected of Shelter Afrique Development Bank, he disclosed that the firm is expected to provide construction financing to mortgage institutions.

The MOFI chief added: “This means we are opening up more opportunities on the supply side, and providing more opportunities for our developers who are interested in building houses for our subscribers, but in need of financing.

He added that MREIF will not give financing directly to developers but offer off-take guarantees they need to go to a financial institution that is willing to base on off-take guarantee and give them construction financing, adding that Shelter Afrique Development Bank will not give the construction financing without the off-take guarantees.

On his part, the Managing Director of Shelter Afrique, Thierno-Habib Hann, said the partnership is a strategic alignment between the two institutions.

He explained that the Bank embodies a commitment to accelerate investment flows, unlock new opportunities in the housing and urban development sectors, and create a tangible impact on lives and economies.

He added that Nigeria’s role in the partnership is crucial as one of Africa’s leading economies.

Indeed, Nigeria is one of the two largest shareholders of Shelter Afrique Development Bank.

Habib Hann noted that Nigeria’s dynamism, its market depth, and its ambitious infrastructure agenda make the country a natural platform for scaling solutions that will shape the future of housing and urban development across Africa.