The Mortgage Banking Association of Nigeria (MBAN) has urged the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) to match its impressive financial performance with accelerated mortgage creation to deliver a sustainable housing finance system capable of addressing Nigeria’s deficit.

MREIF’s Half-Year 2026 financial results showed strong performance, reporting a profit before tax of N14.49 billion and a profit after tax of N14.24 billion, declaring interim dividends, and increasing its net asset value per unit to N106.71.

In a statement, MBAN President, Mr Ayo Olowookere, commended the Fund’s achievements, describing them as evidence of sound financial management deserving of recognition.

“As a public-private partnership initiative established to provide long-term, low-cost mortgage financing, MREIF has a critical role in tackling Nigeria’s housing deficit,” he said.

While acknowledging the Fund’s strong financial results, Olowookere observed that although MREIF increased its mortgage portfolio by 86 per cent within six months, a substantial portion of its assets remained invested in cash and investment securities rather than mortgage loans.

He noted that most of the Fund’s income during the period was generated by interest on these investments rather than from mortgage lending, suggesting significant room to accelerate capital deployment in line with its developmental mandate.

According to him, MREIF’s primary responsibility is to expand mortgage creation while maintaining prudent underwriting standards and effective risk management. “Mortgage lending requires strong credit assessment, legal documentation, property verification and reliable operational processes. The challenge is to balance protecting investors’ capital with delivering mortgages quickly enough to address Nigeria’s significant housing deficit,” he said.

Olowookere stressed that MREIF’s mandate extends beyond delivering investment returns, noting that the Fund was created to expand access to affordable mortgage finance, deepen Nigeria’s housing finance market, mobilise long-term capital and increase homeownership. “Long-term success should be measured not only by profitability but also by its effectiveness in delivering affordable mortgages and supporting housing development,” he added.

The MBAN president also called for stronger collaboration between MREIF and industry stakeholders, particularly primary mortgage banks, to improve transparency, strengthen execution and maximise the Fund’s impact.

He maintained that regular engagement with mortgage operators, alongside government reforms in land administration, foreclosure processes, property registration and the broader housing finance ecosystem, would unlock MREIF’s full potential.

Olowookere assured the Fund of the mortgage banking industry’s support in achieving its objectives.

“Nigeria’s mortgage banking industry is prepared to support this goal by originating high-quality mortgage assets, strengthening underwriting standards, leveraging technology and partnering with    MREIF to expand responsible mortgage lending nationwide,” he said.

He added that MREIF’s long-term legacy would not be judged solely by its profitability, dividend payments or asset growth, but by the number of mortgages created, homes financed, families empowered and its measurable contribution to reducing Nigeria’s housing deficit.